NIFTY opened the week with a huge gap-down at 16,840 and started falling on Monday due to Omicron worries. Support was taken at 16,410 and moved up on Tuesday, Wednesday and Thursday with intermittent profit booking. 17,000 was crossed in a gap-up opening on Thursday but the index faced stiff resistance at 17,100. NIFTY opened with a gap-up on Friday but selling kicked in and the index closed the week at 17,004, up 19 points or 0.11% on a week-to-week basis.
BANK NIFTY had a rather bearish week, opening with a huge gap-down at 35,226 followed by a fall up to 34,000. The index took resistance at 35,000 multiple times and finally broke the level on Wednesday towards the close. BANK NIFTY tested 35,500 on Thursday but failed. The index moved down below 34,600 on Friday and finally closed the week at 34,857, down 762 points or 2.14% on a week-to-week basis.
NIFTY IT moved up by 2.95%. NIFTY MEDIA went down by 1.54% whereas other sectors consolidated.
Movement in Midcap and Small-cap stocks was similar to the large-cap stocks.
Foreign Institutional Investors have net sold shares worth 33,000 crores this month. Domestic Institutional Investors net bought shares worth 27,000 crores.
The US markets too fell on Monday but recovered the fall and moved even higher to close the week well in the green. S&P 500 is only a few points below the all-time high.
The European markets also recovered the fall by Thursday. It was a four-day week for most of the markets.
A letter by the Centre to the states on Wednesday said that Omicron is at least three times more transmissible than the Delta variant. However, the Omicron worries have eased now.
NIFTY has supports at 17,000, 16,900, 16,820 and 16,770. We can expect resistances at 17,100, 17,200, 17,250 and 17,325.
Nifty has the highest call OI build up at 17,500 followed by 17,200.
The highest put OI build up is at 16,500, followed by 17,000.
BANK NIFTY has supports at 34,800, 34,600, 34,400 and 34,000 and resistances at 35,230, 35,330, 35,530, 35,700 and 36,000.
The highest call OI build-up is at 36,000 and the highest put OI Build-up is at 34,000.
The Omicron worries have eased now and the UK Government scientists said that Omicron has milder symptoms than the Delta variant.
We had no global market cues during the market hours on Friday as it was the Christmas holidays. Let us watch how US futures perform in the morning along with the Asian Markets.
Domestic Institutional Investors turned out to be net sellers on Friday after a long time. But the figure is low, standing at Rs 42 crores. FII selling is still a concern for the investors.
NIFTY was able to close above 17,000 despite the fall on Monday and FII selling that is challenging the market since the beginning of the month. However BANK NIFTY does not look strong enough to move higher. The index is not much higher than the Pre-Covid level. If there is enough support by BNF, there is chance for the market to cross 17,300.
Will NIFTY touch 16,700 or 17,300 first? Let us know in the comments section below.