Weekly Market Outlook for 3 July to 7 July

It was a historic week for our markets as the Nifty and Sensex marked a new milestone to cross the 19000 and 64000 levels respectively. The upmove witnessed a broad market participation and the Nifty index ended the week tad below 19200 with weekly gains of almost 3 percent.

Nifty Today:

Our markets continued to reward the participants as the indices resumed the upmove and showed a sustained move at higher levels. This uptrend has been supported by a broad market participation and the index heavyweights seems to be witnessing buying interest which should lead to a continuation of this momentum. Recently, we witnessed a small correction from the previous swing highs as the RSI readings were overbought, but the 20 DEMA again acted as a support and the index resumed its uptrend from that support. The other key indices too are in sync with the market momentum with the IT sector too joining the trend in Friday’s session. Hence, traders are advised to continue to trade in the direction of the trend and avoid any contra-bets. Nifty’s move when compared to the Midcap index during the week indicates an outperformance by the benchmark and hence, it seems that the index heavyweights could see an outperformance to lead the indices higher. In the derivatives segment, we have seen long rollovers by the FII’s in the index futures segment and they have started the July series with about 66 percent of positions on the long side. In the options segment, the 19000 put option of the coming weekly series has added decent open interest which would be seen as the immediate near term support. On the higher side, the reciprocal retracement usually gives a fair idea on the probable target/resistance zones and the near term levels as per the retracements indicates probable target around 19440.

                                                                Heavyweights lift the benchmark to 19200, momentum expected to continue

The index heavyweights witnessed a good buying interest in last couple of sessions leading to outperformance in the benchmark. We believe that the large cap names could witness further strength in the coming week and traders should look to capitalize on the same.

Nifty, Bank Nifty Levels and FINNIFTY Levels:

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