Stock market outlook: Nifty should find support near 100-day average, which is placed at 11,050 levels

Bull market or bear market?
We continue with our negative bias and expect some recovery in the next week from the lower support levels of 11050-11100 range.

Stocks likely to be in limelight today?
Cadila, Lupin, Godrej Consumer Products and IT stocks would be key to watch with respect to the rupee movement against the dollar.

Sectors likely to impact market today?
FMCG and Pharma sectors will be under pressure as individual stocks have witnessed short build up in today's trade.

Your mid-term view?
Nifty should find support near the 100-day average which is placed at 11,050 levels. Bank Nifty has corrected sharply in the past few weeks, should see some bounce from 26100 levels from its 200-day average. Private Retail Banks should lead to the positive momentum.

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What drove markets on Wednesday?
Nifty opened higher on back of global cues but failed to sustain and witnessed sharp selling in the second half across sectors and stocks as crude prices spiked to near $80. Metals gained by 1% while other sectors declined by 0.5-1.5% for the day.

By: Vikas Jain
(The author is senior research analyst, Reliance Securities)

Source: DNA Money