LAST WEEK

NIFTY opened the week flat at 17,755 and moved down since there was negativity due to inflation data from China. The index opened much lower on Tuesday and closed lower as there were data coming up overnight including the US inflation data. The expiry day saw a gap-up opening with the US CPI coming in line with the expectations but fell and closed below 17,500 following the negativity in the global markets. Markets were off on Thursday and Friday. NIFTY closed the week at 17,475, down by 309 points or 1.74%.

BANK NIFTY opened with a gap-down at 37,643 on Monday and had a volatile flat day. 37,900 acted as a strong resistance. 37,300 offered support and BNF rallied the next day towards the end. But Wednesday was a bearish day and BNF closed the week at 37,463, down by 288 points or 0.76%.

IT closed more than 2% in the red.

Foreign Institutional Investors net sold shares worth Rs 6,300 crores last week.

Domestic Institutional Investors net bought shares worth Rs 1,800 crores.

The week started with global inflation worries as Chinese inflation data was unsatisfactory.  Consumer price inflation rose by 1.5% YoY against the expectation of a 1.2% rise. Producer price inflation was expected to grow at 7.9% but the data came out at 8.3%.

TCS results were in line with the expectations whereas Infosys results were highly unsatisfactory. HDFC Bank reported a 23% growth YoY.

The US market shot up on inflation coming out at 8.5% as expected but reversed soon and closed in the red. This is another 40-year high but there are expectations that inflation might have just peaked. 

India CPI inflation came out at 6.95% above the RBI limit. Food price inflation stood at 7.68%. The industrial output data stood at 1.15% for the quarter.

SGX NIFTY is at 17,300.

INDIA VIX is at 17.8.

WEEK AHEAD

NIFTY has supports at 17,390, 17,320, 17,150 and 17,000. We can expect resistances at 17,550, 17,600, 17,640, 17,780 and 17,830.

BANK NIFTY has supports at 37,300, 37,150, 37,000, 36,800 and 36,400. Resistances are at 37,700, 37,900, 38,150 and 38,650.

NIFTY has the highest call OI build-up at 18,500. The highest put OI build-up is at 17,000.

BANK NIFTY has the highest call OI build-up at 38,000 and the largest put OI build-up is at 36,500.

The market will first react to the Infosys results and HDFC Bank results. 

Ukrainian missile counter had sunk the Russian ships and since then, Russian attacks were more aggressive in the East and Kyiv.

Keep an eye on the Crude oil prices which have spiked to more than $110. Remember that 85% of the oil we consume come through imports and thus the crude oil prices can significantly affect our markets.

We have the following major corporate earnings this week.

Thursday: HCL Tech and Nestle

Saturday: ICICI Bank

I will be closely watching 17,000 on the downside and 17,900 on the upside for major moves.

Let us know your expectations for the week in the comments section!

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