The month has been good so far for the share markets as they have jumped nearly 3 per cent in July alone. F&O expiry this month falls on July 25 and experts believe that the markets might be volatile during July expiry.
In order to understand how the markets might behave through the week, The Pioneer talked to market experts, who feel there are no major negative triggers for the market. AK Prabhakar from Anand Rathi Securities feels the markets might have a weak opening on Monday as investors will try to book profits but overall the positive momentum will continue.
He further added, “5950 is a major support for Nifty which it might touch in the start of the week. But a bounce back will be seen from those levels and Nifty can touch 6180 levels also.” He believes information technology (IT), pharmaceutical and FMCG sector will be the front runners as markets try to make new highs. On the other hand, he expects metal and banking shares will under maximum pressure.
RK Global’s Rakesh Bansal has a similar view and is confident that Nifty will soon touch 6100 levels. On the downside, he feels nifty can also correct to 5900 but from there a strong buying is expected to come.
“We expect FMCG, IT and pharmaceutical shares to outperform the markets while banking sector might see pressure. Investors should strictly avoid banking space for any bottom fishing and should exit their positions on every rally the space might show.”
Ashok Agarwal from Escorts Securities feels that the overall sentiment of the markets is positive. “Expiry will be a little volatile but nifty can again touch 6100 levels in this expiry. There might be buying in IT and oil & gas shares while metal and interest sensitive sectors still look quite weak.”
Ravi Rastogi from Globe Capital stressed that there are no major negatives left in the market and feel that going forward markets will perform. He said, “July expiry can happen some where around 6100 levels. We expect the buying in defensive sectors to continue and as far as currency goes, we expect Rupee to stabilize now and might even see it gaining strength in the coming days.”
Since it is the last week of July series, derivative expert Nitin Murarka from SMC Global feels markets can start on a weaker note and Nifty can even fall down to 5850 levels. He said, “Derivative data from Friday suggests that going forward Nifty can fall before this month’s expiry. We expect july expiry to happen around 5900 levels but from there a reversal is also possible which can again take Nifty back to 6100.”
like other experts, Nitin too, feels that IT, FMCG and pharmaceutical shares are the best bets in the current market while banking, auto and real estate shares will continue to be under selling pressure through the week.
In all, markets do feel positive but profit booking and expiry will play a major role in deciding the trend of the market this week. Most of the experts expect July expiry to happen around 6100 levels and feel that investors will continue to buy till the sentiment is positive.