Last Week in Nifty

Indian markets broke their 2-month consolidation in a 500 point zone last week and rallied to fresh all-time highs. The market opened with Nifty at 15,874 on Monday, more than 100 points up from the previous Friday’s close.

As we said in last week’s article, a close above 16,000 will confirm Nifty’s bullishness and push it higher to 16,200 and above as happened. 

The first week of August saw FIIs returning as net buyers in the market, and Nifty closing the week at 16,238, more than 3% and 450 points up.

Bank Nifty finally outperformed by touching the 36,000-mark for the first time since March. The index of banks was boosted by results from SBI. ICICI Bank and SBI touched fresh 52-week highs, and HDFC Bank and Kotak Bank rallied 5-7% each after the July sell-offs.

Bank Nifty also closed more than 1200 points or 3.5% up from previous week’s close.

The Vodafone Idea craziness continued with the stock falling to Rs 4.6 after Kumar Mangalam Birla’s resignation from the Chairman post of the company and UK’s Vodafone saying they are not interested in pumping any more capital to Vi. The stock however closed 19% up on Friday after the Government sought to remove the retrospective tax.

With the confusion in Vodafone Idea’s camp, Bharti Airtel moved up more than 6% in the week. The stock is near its 52-week high now. Reliance was up nearly 5% for the week before falling on Friday afternoon after the Supreme Court ruled in favour of Amazon in the Future Retail deal.

It was a week of the heavyweights with HDFC also moving more than 6%, breaking out after announcing results on Monday. 

IT, Auto, Realty and FMCG stocks also gained in the week were financial stocks outperformed. Meanwhile, Midcap and Smallcap stocks stayed flat as money flowed into the heavyweight stocks.

Foreign institutional investors turned net buyers in the first week of August for more than Rs  2,616 crores. They had sold heavily in July in the cash market for Rs 23,193 crores.

Week Ahead in Nifty

Market experts see positivity in the return of FIIs as net buyers in the cash market. This trend may continue is what many investors feel. The breakout from the 2-month consolidation zone has given strength to Nifty to go up even further.

More Nifty 50 are set to report Q1 earnings including Tata Steel, ONGC, Coal India, Shree Cement, Power Grid, BPCL, Eicher Motors, Hero MotoCorp, and Grasim Industries. A total of 1,900 companies are set to announce their results this week.

For the second week in a row, 4 fresh IPOs are coming including CarTrade, Nuvoco Corporation tomorrow. Aptus Value Housing Finance India and Chemplast Sanmar will open their IPOs on Tuesday.

The highest call OI stands at 16,300. Highest Put OI is at 16,000 levels. 

Nifty closing above 16,200 has confirmed that going ahead 16,000 will be a strong support for the index. 

Bank Nifty closed the week under the 36,000 level, and this level needs to be watched in the coming week as well.

U.S markets closed on Friday near their record highs. We will be adding how the Futures of these global markets and Asian markets are performing in our pre-market report, tomorrow morning

If FIIs return as strong buyers in the market, then NIFTY is likely to rally more this week. But current personal expectations are that Nifty will be consolidating this week as individual stock specific rallies continue. 

Midcaps and smallcaps will have to be watched, to see if they continue consolidation or move up more.

Reliance’s movements will have to be watched closely after Friday’s fall.

What do you think will happen this week? Will Nifty continue its rally? Or are you expecting consolidation? Let us know in the comments section of the marketfeed app.