InvestorQ : What is your trading view for Monday 05 July? When can I expect 16,000 on the Nifty?
Arusha Ray made post

What is your trading view for Monday 05 July? When can I expect 16,000 on the Nifty?

diksha shah answered.
1 year ago

On Friday, the Nifty gave a positive close but the weekly performance of the Nifty was nearly 85 bps in the negative. Among the Nifty leaders, only Reliance and Hindustan Unilever showed reasonable gains during the week. All other major stocks including the likes of TCS, HDFC Bank, Infosys and HDFC ended with losses.

In a way, the week belonged to the small cap stocks with most of the small caps gaining anywhere between 25-30% during the week. The small cap gainers were spread across sectors and themes and were largely alpha driven and stock specific. While there are froth concerns, this is a good sign that retail investors are getting active in equities.

Foreign investors were net sellers to the extent of Rs.983 crore on Friday. However, the domestic institutions infused Rs.930 crore into the equities and more or less neutralized the FPI selling on Friday. However, pressure of FPI selling is quite strong in July with the FPIs seeing outflows of Rs.5,246 crore in July in just the first 3 days of trading.

Among global markets, the US markets were strong on Friday ahead of a long weekend. While the Dow was up 44 bps and NASDAQ was up 83 bps, it must be remembered that US markets are closed on Monday on account of the US Independence Day celebrations. That could leave the Indian markets without a benchmark to boot.

Coming to your question on 16,000 on the Nifty, I think the next trigger could come from the June quarter results and I am especially counting on some good news coming from the likes of Infosys and TCS. Also, if the inflation tempers in July, it should be the first signal for the markets to scale above 16,000 on the Nifty in July itself.