Market indices likely to remain upbeat

After shedding volatility and registering continuous gains throughout last week, which saw a rise of nearly 700 points, market experts say stock market indices would continue their upward rally this week, too. However, they may trade cautiously, with an upward bias.

Brokers opined that markets had seen a good rally but there could be corrections in the near term if not this week. The market has fairly absorbed the monsoon worries and rain recovery has stoked a fair amount of positivity. CNX Nifty gained 203.55 points or 4.49 per cent on a weekly basis, to close at 4,732.35 on Friday against the previous week’s close of 4,528.80. Similarly, the Bombay Stock Exchange Sensitive Index, or Sensex, inched close to the16,000 mark with a rally of 681.51 points to close the week at 15,922.34, up 4.47 per cent.

Amitabh Chakraborty, head (equity), Religare Securities, said, “Market will move further up this week on the back of good and stable global cues. Global liquidity is intact and I believe Sensex may cross 16,000-mark and Nifty go beyond 4,800.”

Market experts said if Nifty, which broke all technical barriers last week, crossed the 4,810-mark, the next strong resistance would be at 5,100. Over the last several sessions, Nifty was oscillating between 4,300 and 4,700 and kept trying to break out.

According to Kishor Ostwal, chairman & managing director of CNI Research, markets are most likely to go up this week. “Stocks consolidated and have moved up last week. It seems Nifty will go beyond 4,810 and trigger short selling. Simultaneously, movement in Sensex will be sharper since global cues are fairly positive except China.”

Sectors which are likely to perform well include real estate, infrastructure, commodity, consumer goods and public sector banks. On the other hand, sectors on which analysts are bearish are IT, cement, fast moving consumer goods (FMCG) and auto.