Last Week

A week of all-time highs!

NIFTY opened the week with a gap-down at 17,451 and the next day it fell near 17,330s. From that point, it turned bullish, and then on Friday it hit a fresh all-time high at 17,947. Nifty closed the week at 17,853, nearly 1.5% up from the previous week.

The Evegrande issue from China had some negative impacts on the global markets during the early days of the week. But the Central Bank of China neutralized it by injecting 16 billion dollars into the economy and Global markets reacted positively to it. 

Outcomes of the U.S Federal meeting also triggered the American markets to move up and closed the week in the green.

Bank Nifty opened the week with a nearly 1% gap-down and on Thursday it fell heavily near 36500. As we all know, 36,500 is a super support for Bank Nifty and from there it bounced back, similar to Nifty. On Friday, it touched exactly the previous all-time high at 38,112, consolidated, and closed at 37,830.

On Friday we witnessed some profit booking after Nifty hit a fresh all-time in the morning session. But keep in mind that the sell-off wasn’t strong enough on that day.

Foreign Institutional Investors(FIIs) net sold Rs 8.38 crore worth in the cash market, with the month’s total inflow now standing at over Rs 7,137.72 crores.

Domestic institutional investors(DIIs) net bought Rs 30,48 crore worth of shares during the week.

Week Ahead

We can expect China’s Evergrande-related news in the coming week as another interest payment on bond is due on Wednesday.

India VIX itself was highly volatile and crossed above 16 after 11 weeks.

The highest call OI stands at 18500 followed by 18000 and 17900. Highest Put OI is at 17000 followed by 17500, 17700 & 17800.

Major stocks including Reliance, Kotak Bank, L&T, Bajaj Finserv hit fresh all-time highs.  You can watch out for 2500 and 2000 levels in Reliance and Kotak Bank respectively.

Auto sales data will be released from October 1 and we can expect movements in the sector. Major auto manufacturers had to cut down production due to the semiconductor shortage.

The U.S. markets opened with a gap-down on Friday, slowly moved up, and closed flat. SGX Nifty closed below 17,900 on Friday with total consolidation.

Markit Manufacturing PMI for September and foreign exchange reserves for the week ended September 24 will be out on Friday.

Nifty formed a consolidating red candle on Friday, but it hasn’t lost its strength.  17,350-17400 will continue to act as a medium-term support zone for the index. On the upper side 18000 and 17,950(near the all-time high) will act as resistance for the index.

Will have to keep watching the Asian markets tomorrow morning to see how they react. 

What do you think will happen to Nifty this week? Can we expect some consolidation in the coming week as Nifty and Bank Nifty are currently near strong resistances, but with good bullish strength? Let us know what you think in the comments section of the marketfeed app.