Markets had a volatile week. The ITC jolt created a gap down for the markets. But after a few flat sessions Nifty managed to close at another weekly high firmly above 9900. Sentiment remains bullish with a cautious tone and it seems market is taking a pause before the next move. Being expiry week and result season expect the market to remain in a tight range with a firm base of 9800 as far as Nifty is concerned.
RIL and Wipro were in news as RIL clocked excellent results with Wipro not doing so bad either. RIL announced a bonus issue with a news packed AGM where as Wipro said it will buy back 11000cr worth of shares. The result season will continue on D-Street and individual issues will continue to have reactions. Pharma sentiment seems to be getting better as news flow remains on the positive side.
Technically Nifty has a base in place at 9800 and till that is defended bears will struggle. Having said that call writing has been prevalent at 10k. Some put writing is also evident in 9900 strike. If news flow and global set up is steady one is likely to see the expiry above 9900.
Fundamentally the market are still overbought. Nothing has changed since last week. Markets are near all time high multiples. There is a lot of liquidity and clear lack of negative trigger and that is keeping the market afloat. FIIs have been buyers and strong DII flows continue to keep the buy on dips momentum going. One must keep eyes and ears open as even the slightest of negative triggers and absurd reasons may pull the market down.
IT seems a strong play as Nifty IT index is on its way to hit the top end of the 1000 point range of 10k-11k. Pharma has had a very decent run however one has to be cautious on positions as Nifty Pharma approached a very critical resistance at 10200-300. The sugar space shall continue to see some action so that is one space to watch out for next week.
