Aggressive buying may not continue in markets: Experts
NEW DELHI: The four-day trading session of last week began on a positive note, with a gap up opening on Monday when the Nifty reached a new high of 17429.50 .
However, after setting a new high, the Sensex and the Nifty50 traded in a narrow range for the rest of the trading session. Analysts expect this trend to continue this week as well.
Last week, the 30-share BSE benchmark rose merely by 175.12 points to close at 58,305.07, and the Nifty50 rose 45.65 points to 17,369.25. In the last one month, the two indexes have grown by over 5%.
“On the weekly time frame, the benchmark index had formed higher highs and higher lows for the sixth week in a row, however, unlike last week, Nifty has formed a Doji candle, which indicates market indecisiveness. On the global front, the economy is improving, and several nations have opened entirely, allowing them to vaccinate the majority of their populations, which is a good sign for the market,” Gaurav Garg, Head of Research CapitalVia Global Research Limited told TNIE.
“On the domestic front, the government has been working on several projects aimed at strengthening the country’s infrastructure. Overall, the Index could rally for another week, although not as aggressively as it did in the last week of August. The market may trade in the range of 17250-17750 (Nifty) in the next week,” Garg said.
Inflation data and global trends would be the major driving factors for the equity markets this week, which after a record-breaking run took a breather in recent trades, analysts said.
“The inflation data for August will be a key data point that the market awaits in the coming week. Retail inflation is expected to remain high in line with the July inflation rate of 5.59% while wholesale inflation is expected to ease from the previous level of 11.16%. Globally, the investors are awaiting the outcome of ECB (European Central Bank) meeting to gauge future tapering plans,” said Vinod Nair, Head of Research at Geojit Financial Services.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd also mentioned that global cues would be actively tracked as fear of economic slowdown looms while Delta variant cases continue to surge.
Deciding factors
Inflation data and global trends would be the major driving factors for the equity markets this week, which took a breather in recent trades.