Markets Next Week: Nifty To Hit Its 200 DMA Of 16,600

Indian equities saw bulls making a comeback and in Friday's session Nifty ended higher reclaiming 16,200 levels. Broader indices however lagged marginally and Bank Nifty continued to be in good shape.

While historically, there is positive momentum in July, some of the factors such as continue FPI selling, higher crude, tightened monetary policy are not good for the global markets. For this week, FPIs returned to the street and bought equities on Thursday.

Also, as for the global impact, the US jobs data released Friday provides for signs of resilience as the economy added 3.72 lakh workforce in June shrugging off inflation and growth concerns.

There is a view by analysts that after clinching levels above 16,200 on the Nifty, the headline index may see the next upside resistance. Also, some of the analysts hold the view that the current rally shall fizzle out as the large global factors shall play spoilsport including mometary tighetning and the softening of commodities.

ICICI Direct is of the view that technically Nifty shall head towards 200 DMA which is placed at 16,600 in the coming week. While all the sectoral indices ended in the green, the next week shall be led by BFSI, IT, capital goods and auto pack.