The markets closed with gains of about 0.3 percent on Friday (July 2) after a subdued week. Nifty continues to stay in the range of 15,600 and 15,900 . "Overall, we feel that 15,600 is a strong support for the short to medium-term. The market saw outstanding returns from the recently listed IPO companies especially in Route, Happiest, and Sona Comstar", said Mohit Nigam, Head-PMS, Hem Securities. "We feel that there is still a lot of momentum in the small cap space across different sectors," he said.
According to Sumeet Bagadia, Chief Executive Director, Choice Broking, "Technically, the index has taken good support at Lower Bollinger Band formation and pulled back further. Moreover, the stochastic has indicated positive bias although the MACD is still showing some weakness with negative crossover. On an hourly chart, the index has moved above the 21 HMA and also formed like Rounding Bottom, which points to further recovery for the near term. At present, the Nifty seems to have resistance at 15915 levels while immediate support comes at 15,600," he said.
US markets gained 1.1 percent during the week with better news on COVID, vaccinations, re-openings, economic growth and earnings. The most anticipated piece of economic news this week was Friday’s (July 2) monthly jobs report. Economists expect 683,000 jobs were added in June.
Crude oil prices have surpassed $75 per barrel with OPEC and allies to shortly decide their production policy amidst rising crude demand.
According to Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd, "In the medium-term, we expect FPI flows to India to remain strong, driven by recovery in growth. Positive export outlook led by a revival in global economy coupled with low interest rates in the domestic market is expected to augur well for India. Besides, decline in COVID cases and vaccination drive, expectations of increased consumer spending and normal monsoon rainfall is likely to drive the domestic demand. Also, we expect upcoming festive season to also boost the domestic demand," he said.
"The bulls seems to have come back gradually from the lower support on Friday. Confirmation of bullish reversal by the way of follow-through upmove is likely to open further upside towards 15,900 levels again in the near term. Immediate support is placed at 15,650 levels," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.