The key Indian equity indices traded on a positive note on Monday morning with the BSE Sensex rising over 200 points.
Healthy buying was witnessed in banking and finance stocks.
Around 10.15 a.m., Sensex was trading at 54,491.21, higher by 213.49 points or 0.39 per cent from its previous close of 54,277.72
It opened at 54,385.71 and has so far touched an intra-day high of 54,584.73 and a low of 54,336.86 points.
The Nifty50 on the National Stock Exchange was trading at 16,289.05, higher by 50.85 points or 0.31 per cent from its previous close.
The top gainers on the Sensex were Bajaj Finserv, Mahindra & Mahindra and Titan Company, while the major losers were Reliance Industries, ONGC and HCL Technologies.
Manish Hathiramani, technical analyst with Deen Dayal Investments: "The Nifty has opened smartly and is trading above the 16,300 level. We need to keep above this level for the markets to scale up higher to 16,500-16,600 which is the next target for the index."
"The support for the week has been updated to 16,050-16,100 and as long as this does not break on a closing basis, the trend is positive and intra-day dips can be utilized to accumulate long positions."
Week Ahead
Going by today's positive note, India's key equity indices are expected to resume their northward trajectory during this week, as per experts, who had forecast build-up of investors' hopes on faster economic recovery as well as easing Covid restrictions are likely to trigger this trend.
Besides, the expected growth in industrial production will also support this trajectory. However, rotational profit-booking could induce some volatility during the week ahead.
"Nifty could rise some more in the coming week in the absence of any major negatives emerging," said HDFC Securities' Retail Research Head Deepak Jasani.
"However, the broader markets could continue to see rotational profit-taking. 15962-16146 could be the support band for the Nifty in the coming week while 16337-16349 could act as a resistance."
Last week, India's benchmark indices ended 3 per cent higher on the back of resumption of buying in banking stocks and easing of regulatory tensions in China led to this upmove.
"We expect the positive momentum in the market to continue on account of strong domestic economy data, impressive quarterly results and unlocking in various states," said Motilal Oswal Financial Services' Retail Research Head Siddhartha Khemka.
"Next week market would react to US and China inflation data along with UK GDP data. Lot of stock specific action would continue as more results get declared."
Apart from the macro-economic data points, the week ahead will be influenced by Q1FY22 corporate earnings.
Notably, companies like Indian Hotels, Coal India, IFCI, Power Grid, Max Healthcare, Lupin, Motherson Sumi , India Cements, IDFC, and Hero MotoCorp are expected to announce their Q1FY22 earning results next week.
"In the coming week, key economic data releases to watch out for include inflation data for July and industrial production data for June," said Geojit Financial Services' Research Head Vinod Nair.
"CPI inflation level for July is expected to remain high, though lower than June's level of 6.26 per cent." The Central Statistics Office (CSO) is slated to release the macro-economic data points of Index of Industrial Production (IIP) and Consumer Price Index (CPI) on August 12.
