InvestorQ : What is your stock market view for 16 July and will the Nifty finally break above 16,000 on Friday?
Debbie Mascarenhas made post

What is your stock market view for 16 July and will the Nifty finally break above 16,000 on Friday?

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diksha shah answered.
3 weeks ago
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I will come back to the 16,000 level question later. First, let us look at the attempts made by the Nifty on Thursday. During the day, Nifty made several attempts to break above 16,000 mark, but gave up gains and closed at 15,924. However, the VIX is still low and we should see the Nifty 16,000 levels getting breached sooner rather than later; perhaps by next week.

With a slew of solid technology results, the day belonged once again to the tech stocks. IT is seeing a virtual re-rating after the strong guidance given by Wipro and Infosys for revenue growth in FY22. Wipro’s higher attrition and lower margins could be a concern, but for now IT looks like a safe bet in the current market conditions and also a hedged bet on the dollar.

FPIs net sold Rs.265 crore on 15 Jul while the domestic institutions bought Rs.440 crore in equities. On Thursday, the Dow was positive but European markets like the DAX, FTSE and CAC lost over 100 bps. The SGX Nifty is flat to negative in early trades but could make an attempt at 16,000.

The trigger for Nifty 16,000 could come from results season. Right now we only have the IT sector results. If banking and oil can also give a good quarterly performance, we are on target to touch 16,000 on the Nifty in the coming weeks.

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