Will the record run for markets continue?

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Indian markets continued to rise for the third consecutive week, adding over a per cent last week.

Nifty touched a fresh record high of 15,734 on Friday led by positive global cues, including encouraging US non-farm payroll data, in line RBI policy outcome and better than expected auto sales. The Sensex also climbed close to its record level of 52516.76 during the week. Consistent fall in Covid-19 cases also kept the mood uplifted. However soon profit booking  took over.

The benchmark S&P BSE Sensex tumbled 436 points from the day’s high and hit a low of 51,953. It, however, trimmed losses marginally to settle the day at 52,100 levels, down 132 points or 0.25%. On the NSE, the Nifty50 index dropped 64 points from the record high to close at 15,670 levels.

Broader markets  outperformed the benchmarks. BSE Smallcap index jumped 12%. BSE Midcap Index rose 10% during the week.

“Factoring the impact of second wave, RBI reduced the FY22 GDP forecast from 10.5% to 9.5% and trimmed the inflation forecast from 5.2% to 5.1%. As expected, RBI kept its policy rates unchanged and reiterated its accommodative stance. G-Sec buying and liquidity support to MSMEs and affected sectors will help to overcome the pandemic hit the economy,” Vinod Nair, Head of Research at Geojit Financial Services said.

Here’s how experts see markets trading this week

Manish Shah, Founder, Niftytriggers.com

Nifty closed the week with a net gain of 1.5 % over the close of the previous week. Nifty on the weekly time frame has closed above the prior swing high and this is a trend continuation signal. A close above 15650 means that Nifty should continue its up move and trend pattern remains unhindered. Nifty is in a state of a strong trend and at best we could see 1-3 days of corrective decline. The low of the day Nifty took support at the gap area between 15,600-15,610 and bounced off the lows. Whatever one does avoid short selling the market and this is in a state of a strong trend. Buy dips or endure a couple of days of listless action. Nifty should see a steady rally to 15,800-15,850 and notwithstanding short-term declines. Rally over the course of the month should hit 16,000+ levels. Stay with the trend.

Rohit Singre, Senior Technical Analyst, LKP Securities

The index closed the week at 15,670 with gains of 1.5% and formed a bullish candle on the weekly chart for the third consecutive week that shows good strength.

Going forward, 15,600-15,500 will act as good support, and any dip near the level will again be a buying opportunity for an immediate bounce towards 15,800.

Any decisive close above 15,800 can push the index towards 16,000, where short-term traders can think of profit booking.

Chandan Taparia, Vice President | Analyst-Derivatives, MOFSL

The Nifty50 formed a small Bearish candle on the daily scale and a Bullish candle with higher highs on the weekly chart. It continues its higher highs–higher lows formation of the last four weeks.

The index has to hold above 15,600 to witness an upward movement towards a fresh lifetime high of 15,800 and 16,000, while on the downside, support exists at 15,550 and 15,431.