After hitting record highs on Friday, will Nifty hit 16,000 this week?

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Indian equity benchmarks pared gain after hitting record high to end flat on Friday as gains in pharma, metal and heavyweight RIL were offset by losses in IT stocks and banks. Both the Sensex and the Nifty hit their fresh record highs of 53,290.81 and 15,962.25, respectively in intraday trade but succumbed to profit-booking. The Sensex ended 19 points lower at 53,140 while the Nifty was down 1 point at 15,923. However, both benchmarks logged their first weekly gain in 3 week, rising 1.5% each.

The BSE MidCap and SmallCap indices closed 0.45% and 0.38% higher.

Nifty IT, down over a percent was the top sector while Nifty Bank and Nifty Fin Services were down 0.4% and 0.2%, respectively. Meanwhile, Nifty Pharma and Nifty Metal rose around a percent and Nifty FMCG was up 0.2%.

Angel Broking hit 20% upper circuit of Rs 1,274 after the firm posted strong results with profit more than tripling in the June quarter.

Going forward, this week is a holiday-shortened one and global cues and earnings announcements will continue to dictate the trend. Besides, COVID-related updates and progress of monsoon will remain in focus.

On Monday, the market will first react to HDFC Bank after its quarterly earnings, and Reliance Industries after its acquisition of Just Dial and ahead of its quarterly earnings next week.

Primary market action will remain in buzz. Paytm has filed DRHP with Sebi to raise Rs 16,600 crores through initial public offer (IPO), which will be the biggest IPO in India’s stock market history. In 2010 Coal India IPO was the biggest IPO in India with IPO size of Rs 15200 crores and in 2008 RPower with the IPO size of Rs 11700 was the 2nd biggest IPO.

The street will also look at the IPO share allotment of Zomato, which is expected in later part of the next week around July 22.

Specialty chemical company Tatva Chintan Pharma Chem will remain open for two more days in the coming week. The Rs 500-crore IPO has seen a healthy subscription of 4.5 times on the first day of bidding on July 16.

GR Infraprojects, Clean Science trade at over 60% premium in grey market, ahead of listing. Both companies will list their equity shares on the bourses on July 19. So far 25 firms closed their IPOs successfully and debuted in the current year 2021.

Here’s how experts see markets trading on Monday

Shrikant Chouhan, EVP, Equity Technical Research, Kotak Securities

During the week, the market tested lower boundaries and crossed the upward barrier under the leadership of financials and technology companies. Except for media and PSU bank, all other indices closed in the positive territory.

The real estate sector gained more than 8 per cent and clocked a new high. In the past, the sector had touched a high in 2018 at 375 and in the current week; it closed at 397 after hitting the levels of 402. In the coming week, based on its technical formation, the Nifty has scope to move towards 16100 without much effort. However, for that, support from banks and the FMCG sector will hold the key. We feel the technology sector has delivered its best and now it’s the turn of the FMCG sector to support the market.

The strategy should be to buy if Nifty corrects to 15900-5850 without hitting the levels of 16100. Traders should keep a final stop loss at 15750 for the same. On the higher side, 16000-16100 and 16150 would be resistance levels. It is advisable to reduce long positions between 16050-16150 levels.

Manish Shah, Founder, www.Niftytriggers.com

Nifty seems to be emerging out of a range that we see since the beginning of June 2021. After three weeks of tight closes Nifty now seems to be emerging out of a trap. The sideways action is more of a time correction of April to June rally. It was an average range candle for the week; which did not show any major bull domination. Maybe the bulls are now getting ready to launch a frontal assault.

As long as the Nifty holds around 15900-15950 Nifty’s bullish undertone remains intact. Nifty should not trade below 15850-15825 if the rally has to continue. On the higher expect the index to move towards 16200-16300 over the course of the month.

Ajit Mishra, VP – Research, Religare Broking

Market traded lacklustre and ended almost unchanged, taking a breather after the recent up move. The benchmark opened marginally in the green however profit booking in heavyweights from the banking and IT pack dragged the indices lower. We reiterate our positive yet cautious stance on the market and suggest using dips to add quality stocks. In absence of any major event, we suggest keeping a close watch on earnings and performance of the global markets for cues.