Indian stock markets are expected to begin fresh week on a positive note despite weak Asian stocks. Analysts advice caution, as the rally is not entirely backed by institutional investors. Market experts believe that the market may see stock-specific action due to Q2 results.

Santosh Meena, Swastika Investmart, said, “We are seeing an unprecedented bull run where valorous bulls are marching towards the 18,500 level ignoring all worries of inflation and rising bond yields where we haven’t seen any major pull-back for a long time. The most interesting part of this bull run is that it doesn’t care about institutional inflows because Nifty hit an all-time high on every trading session of last week and ended at an all-time closing high with a good gain of 2.5 per cent despite net selling by institutional investors”.

SGX Nifty at 18,437 indicates an 80-point gap opening for Nifty futures, which on Thursday closed at 18,355. Most Asian markets are down between 0.1 per cent and 0.5 per cent. However, Australia and Taiwan equities are up marginally.

“Bulls continued to remain in charge of Dalal street amid volatility, setting the stage for festive season. While there are not many negative triggers, macroeconomic trends keep improving month-on-month. Markets are in clearly festive mood and we are witnessing fasters sector rotation at play, said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said, “The short-term trend of Nifty continues to be positive. Though Nifty closed near the all-time highs, there is no indication of any reversal formation at the new highs. As per the theory of higher tops and bottoms, one may expect profit booking in Nifty from near 18,500–18,600 levels by next week. Immediate support is placed at 18,265 levels.

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