Last Week in Nifty

It was a four-day week in the Indian markets with high volatility and net consolidation. On Monday, Indian markets opened with a huge gap-down with global negativity.

After this, many analysts turned bearish as European and U.S. markets crashed. On Tuesday night, international markets reversed but we were closed on Wednesday for Bakrid. Nifty opened with gap-up on Thursday and shot up.

Nifty closed the week down by 0.42% at 15,856. Bank Nifty closed 2.65% down at 35,003.

HDFC Bank opened with a huge gap-down on Monday and continued to fall in the other days of the week after reporting profits last Saturday. Closed 5% down from last Friday to this Friday.

Reliance results came on Friday. 7% YoY fall in net profits for Q2, but better than estimates at over Rs 12,000 crores. Reliance Retail reported good growth in numbers.

Asian Paints moved up in the week after reporting strong results.

Zomato was listed in the market with strong gains on Friday, and touched a market capitalisation of Rs 1 lakh crore. Currently, it is the 51st largest listed company in India.

ICICI Bank reported profits over the weekend, a 78% increase YoY in net profit to Rs 4,616 crores after lowering provisions. Gross non-performing assets increased to 5.15% lower than last year’s.

ITC reported 30% rise in Q1 net profit at Rs 3,343 crore with a similar rise in net revenue.

Week Ahead in Nifty

Tomorrow, the market will open with a huge reaction to ICICI Bank and Reliance Industries’ results. 

It is the week of the monthly index and stock futures and options expiry. Nifty continues to consolidate between 15,500 and 16,000.

Many more Nifty 50 and other important stocks are set to report Q1 earnings. 380 companies will release their quarterly results this week. You can keep an eye out for Axis Bank, Kotak Mahindra Bank, Larsen & Toubro, SBI Life, Tata Motors, IndusInd Bank, Maruti, TechM, IOC, UPL, SunPharma, Dr Reddy’s and more.

Many others including Torrent Pharma, Vedanta, SPARC, JSL, IDFC First, Marico, NTPC, TVS Motor, PVR, LIC Housing and Sobha.

U.S Fed meeting outcome on July 28 can be watched, and the monthly expiry is on 29th July.

Two companies are going public this week, Glenmark Life Sciences and Rolex Rings. Tatva Chintan Pharma Chem will list on July 29 after its amazing IPO. 

The highest call OI stands at 16,000, with more than 1.2 lakh contracts. But unlike last week, the highest Put OI is at a safe level of 15,000 with 1.15 lakh contracts. This indicates a slight bearishness in the market.

But Nifty has closed above 15,800 and Bank Nifty above 35,000 level. Support at 15,750 will be important for Nifty, then at 15,500. Bank Nifty will find resistance at 36,000 with support at 34,200. Global markets including S&P 500 in the U.S, closed at all-time highs on Friday.

Last week we expected Nifty to take support at 15,630. But as we wrote, the aggressive put option sellers at 15,800 caused a sudden fall on Monday along with HDFC Bank’s post-result fall. Similarly, this week we are seeing a strong put buildup which is very far away from the current Nifty level. 

Market saw a Doji candle for Friday, but looks in a mood to consolidate in the weekly charts. Reactions to result announcements will be in focus for the rest of the month. What do you think will happen this week? Will Nifty continue to consolidate or break out above 16,000 levels?