Mumbai: Investors are bracing for a roller-coaster ride this week as the RBI monetary policy meet and expectations on the fourth quarter (Q4) results season that begins in a few days will be driving the market.
Analysts expect the Nifty likely to trade between 11500 and 11700, where 11700 call rate has the highest open interest in the April series, on the very first day of the new series.
The market expects the Reserve Bank to lower the repo rate by 25 basis points to 6 per cent on April 4, as it has changed the policy stance to neutral from ‘calibrated tightening.’
March saw massive FIIs Inflows of nearly $5 billion, which helped the Nifty to surge by 7.7 per cent.
“Nifty has recently surpassed the resistance level of 11572 and all set to register new all-time high above 11760. Recent Bottom of 11310 should now act as a strong support and can be kept as a stop loss in Long positions. Positional support for Bank Nifty has now shifted upward to 29400,” said V K Sharma, Head PCG & Capital Markets Strategy, HDFC Securities.
“Metal, Financial services (NBFC) and Infra sector looks promising from here. Auto stocks could bounce due to oversold conditions and recoup their losses for the time being. It would be advisable to cut shorts from the large cap auto stocks, Sharma added.
“Investors should look for the line-up events…one should keep an eye on Nikkei Manufacturing PMI on Tuesday, while related to banking industry, one should look for RBI’s monetary policy on Thursday where we look for CRR and Reverse Repo rates. Auto stocks will be in focus as Auto sales numbers are coming on this week,” Debabrata Bhattacharjee, Head of Research, CapitalAim, said.