Last Week

Nifty’s worst week in many months was seen in the last 5 trading sessions. 

NIFTY opened the week with a gap-up at 17,932 and tested the all-time high. On all 5 days of the week, Nifty closed in the red. Nifty closed at 17,532, down 400 points from Monday’s opening, down 2.2%.

Bank Nifty closed more than 1,100 points down from its Monday’s opening.

Financials and Banking stocks closed in the red along with IT stocks. It was mostly a week of profit booking all around the global markets.

Energy stocks shot up in the week with Oil & Gas, Power, Metals going up as the international power shortage became more intense. The CPSE(Central Public Sector Enterprises) stocks shot up in the week with this strength.

Reliance closed above Rs 2,500 and ended in the green as the general market closed in the red.

Auto sales data came out on Friday, as the month of October began. Maruti reported significantly lower sales for the month of September and blamed it on the semiconductor shortage. Tata Motors and Mahindra reported as expected sales and closed the week in green.

Oyo filed its Draft Red Herring Prospectus with SEBI for its nearly Rs 1 lakh crore IPO. Reports say that LIC will also file for its IPO this week.

Foreign Institutional Investors(FIIs) have net sold Rs 6,092 crore worth of equity shares in the week.

To balance this out and keep Nifty above 17,500, Domestic institutional investors(DIIs) net bought Rs 4,305 crore worth of shares during the week.

Week Ahead

China’s Evergrande issue continues to be a silent issue for the markets around the world. On the other side of the world, in the U.S. we can see political issues leading to a possible default on their bonds for the first time.

India VIX tried to move up in the week but closed at 17.21 slightly in the red. 

The highest call OI stands at 18,500 followed by 18,000. Highest Put OI is at 17,400 and 17,500 followed by 17,000.

Around the world, risk of Covid and fears are decreasing with vaccination rates speeding up.  

Auto stocks along with Pharma are trying to give a breakout. Keep a watch on them. Energy stocks have been rallying and might see more breakouts this week.

The U.S. markets opened with a gap-down on Friday, and closed in the green. SGX Nifty closed below 17,651 yesterday, more than 120 points in the green.

The Q2 results are around the corner and IT stocks as always will report their numbers first. With most stocks near good supports, we can expect a small jump ahead of results.

With the quarter ended in September, we can expect some fund flows from international institutions to come into the market. 

Nifty is expected to keep the 17,450 as good support. 20-Exponential Moving Charges(EMA) is also near this range. As you may remember, this is also near the previous all-time high resistance for Nifty.

Nifty and Bank Nifty may see some consolidation this week with 17,450 as support and 17,800-’900 as resistance. Bank Nifty is expected to see reduced interest as funds flow into other underperforming indices including IT and Pharma.

What do you think will happen to Nifty this week? Let us know what you think in the comments section of the marketfeed app.