Sensex, Nifty weeks ahead: Key events to watch, what the F&O data indicates

BSE’s 30-share benchmark this week Sensex It jumped 2,000 points, or 3.5%, to the 58,000-mark for the first time on Friday as it closed a new closing lifetime high of 58,129.95. Vinod Nair, head of research, Geojit Financial Services, said strong domestic economic numbers are supporting an upward move in the market, even with higher valuations, pointing to a recovery in demand. has improved.

So far this year, the benchmark index has climbed over 10,000 points, or 21.73 per cent. The blue-chip NSE Nifty 50 index on Friday closed at 17,323 after a weekly gain of 3.70%.

“Next week is a holiday-shortened and the participants will have IIP data which is scheduled on 10th September. Apart from this, the speed of vaccination and other COVID related updates will also be taken into consideration. Global markets have played a supporting role in the recent surge and their performance in the coming week will be equally important to sustain the prevailing bias,” said Ajit Mishra, VP Research at Religare Broking.

“We are eyeing Nifty at 17,500 though it may see some pause or consolidation first. In case of any downside, the 17,200-1,050 zone will act as a cushion. The recent trend of rotational buying across sectors is likely to continue in the coming week as well. While the broader indices have also seen a decent bounce of late, we recommend being cautious as any profit taking in the market could derail the momentum again. In short, align your positions according to the trend and continue with the “buy on dips” approach,” he added.

Analysts said trading sentiment would be mostly guided by global trends in the absence of major domestic events.

Talking about options or F&O data, Santosh Meena, Head of Research, Swastika Investmart said: “If we talk about derivatives data, the long exposure of FIIs in index futures is 65%, whereas they have seen some in index options. Long positions are added. This shows that the market is not overheated on the derivatives front and is hedged for any sharp downsides that could prevent any immediate downside. The PCR is at 1.35, which is very comfortable.”

“If we talk about the OI (Open Interest) built for the end of next week, there has been no major construction before 18000 CE with an open interest of about 52.5 lakhs as against 17300 CE and 17500 CE. Both have open interest of about 29 lakhs. On the downside, open interest is evenly distributed between the 17200-17000 zone,” he said.

Although Nifty is touching new highs, Nifty Bank index is still close to around 1,000 from record highs. “Nifty Bank still remains an enigma,” says Santosh Meena, Swastika Investmart, who has unfinished business to test its new highs, where 37200-37750 is an immediate resistance zone, but is looking to move towards the 40000 mark. has the capacity.”

Analysts say global cues will be important as we are outperforming global peers and Indian markets may continue to outperform if there are no major downside surprises.

“US market will remain closed on Monday on account of Labor Day and there was not much movement in Friday trading session, hence, we can expect some firming up in our market in Monday trading session, but if Nifty consolidates then Midcap and Smallcap stocks may perform better. . The cases of COVID are increasing in the United States and some other countries and this may be a cause of concern for the global markets. Santosh Meena, Swastik Investmart said, “It will be important to keep a watch on the change in behavior of USD-INR and FIIs as FII inflows are playing a significant role in the current market momentum.