Markets begin August series on a weak note; what investors should do on Monday

Indian markets largely remained in a tight range during the last week. The market ended lower amid volatility on the Friday which was the first day of the August F&O series on July 30 but buying in auto and pharma names minimised the losses. At close, the Sensex was down 66.23 points, or 0.13%, at 52,586.84, and the Nifty slipped 15.50 points, or 0.10%, at 15,763. For the last week, the Sensex and the Nifty were down 0.7% and 0.58% but gained 0.19 and 0.26%, respectively, in July.

Going forward, four IPOs will be coming out this week will keep the primary markets buzzing. These companies and their shareholders will look to raise up to Rs 3,614 crore. The IPOs of Windlas Biotech, Devyani International, Krsnaa Diagnostics and Exxaro Tiles will open on August 4 and all issues will close on Friday, August 6.

The week will also be dominated by cues from the RBI. The MPC (Monetary Policy Committee)meeting is scheduled in the coming week and that will give us a sense of the inflationary impact on the economy and whether the central bank will keep growth as its prime focus.

Auto sales and earnings will be other two factors which will keep the markets buoyant.

Here’s how experts see markets trading on Monday 

Manish Shah, Founder, www.Niftytriggers.com

On the last close for the month of July Nifty ended the month flat. The range of the month is the lowest in last 19 months. The question is are the markets tiring at elevated levels. Since last 6 weeks Nifty has gone in a range between 15500-15950 and it is a testing time for the participants. If Nifty drops to around 15500 is a buying area and if Nifty reaches around 15900 it is a selling area.
Nifty will remain in a range till the time there the participants are not convinced about the direction. The range in Nifty is relatively narrow at around 3%. The probability of Nifty acting as a continuation pattern is higher as compared to it being a reversal pattern. Most probably Nifty should see a breakout on the upside when it happens.

Ashis Biswas, Head, Technical Research, CapitalVia Global Research

The market witnessed some positive movements and an attempt to hold the support around 15,800. It is going to be crucial for the market to sustain above 15,800, which will help it gain momentum, leading to an upside till 15,900-15,950. Technical indicators suggest a volatile movement in the market in a small range.

Manish Hathiramani, Technical Analyst, Deen Dayal Investments

The index is getting nervous at higher levels and July 30 was no different. Every time it goes closer to 15,900, it comes under selling pressures, takes a U-turn and collapses.

Short and medium-term supports lie at 15,600 and 15,400 and as long as these levels are held on a closing basis, the propensity of the market continues to be on the upside.