Indian Stock Market Viewpoint by Romesh Tiwari, CapitalAim
Indian markets have received support from lower levels and investors have gained confidence. Many stocks are available at good valuations but analysts are still suggesting wait and watch policy for long term investors.
Comments on Indian stock market action by Romesh Tiwari, CapitalAim....
Benchmark Nifty50 opened on a positive note above 11000 levels, but traded sideways for the entire day and closed almost flat on a daily basis above 11000 levels with 78.60 points or 0.71% at 11111.05 levels.
On technical indicators, the MACD has now converged upward on the daily chart and also, the RSI has recovered from the oversold zone on the same chart which is now placed at 42.34 levels. If the Benchmark Nifty50 moves above 11,200 and sustains there, then we may see another round of rally up to 11,500. On the downside, breaking of 10,900 may trigger fresh downward slide which may test 10,700 levels. Nifty is expected to consolidate between 10,900 to 11,250 levels this week.
On the global front, the U.S.-China trade war remains a big concern for the growth of the world economy. This trade war does not seem to resolve soon as the U.S. recently blamed China of manipulating its currency and imposed a tariff on remaining Chinese imports to the U.S. against which China said to retaliate. Along with with this, the continued tension in the Gulf region, putting pressure on the world market. However; if this monsoon, the agricultural situation in India improves then it would provide some support to the Indian economy and the market.
For the next week, the stocks of Auto, Real Estate, Pharma and FMCG sector could move upward. The market is waiting for the government to provide some relief for FPI surcharge and stimulus for auto sectors.
On the international front, there would be CPI & Core CPI data on Tuesday, Core Retail Sales, Philly Fed Manufacturing Index, and Retail Sales data on Thursday.