Last Week

NIFTY opened the week with a gap-up at 17,788 and started moving up. Though the index tried to break 18,000, it fell by some points on Tuesday, only to open with a gap-up on the next day. But Nifty failed to sustain the gap-up and fell below 17,800. As always, SBI results made the market volatile towards the end of the day taking NIFTY to expire at 17,830. 

There was one hour of Muhurat trading on Thursday, where the index opened with a gap-up and the short week ended at 17,917, up 129 points or 0.73% from Monday’s opening. Otherwise, it was just a 3-day week for the Indian markets due to Diwali.

BANK NIFTY opened on Monday with a gap-up at 39,446, followed by an initial down move. The index started its up move and tried to break 40,000 multiple times. But the momentum could not be sustained, and BANK NIFTY fell on Wednesday. There was volatility following SBI results. BANK NIFTY closed the week after Muhurat trading at 39,574, up 128 points or 0.32% from Monday’s opening.

All the major sectors saw a recovery in the last week.

Foreign Institutional Investors(FIIs) have net sold Rs 687 crore worth of equity shares in the week. Domestic institutional investors(DIIs) net bought Rs 344 crores worth of shares during the week. The figures are much lower than what we saw last week where there was a huge sell off by FIIs.

Week Ahead

The Global markets look rather positive, with benchmark indices creating all-time highs.

Even this week, multiple companies including 8 from NIFTY 50 are announcing results – 

Britannia Industries, Mahindra & Mahindra, Tata Steel, Coal India, Grasim Industries, Hero MotoCorp, Hindalco Industries and ONGC.

Also, Zomato will be announcing its results this week.

The U.S. Federal Reserve Policy meeting turned out to be a non-event as the outcome was in line with the expectations: Bond purchases to be slowly brought down by $15 billion per month, starting this month. Currently, the Fed purchases $120 Billion worth of bonds every month.

Inflation data for October can be watched as the world is concerned about global supply crunch. Also, Industrial output data for September will be released this week.

The highest call OI stands at 18,000 followed by 18,300. The highest Put OI build up is at 17,800, followed by 17,500.

SGX Nifty closed in the green yesterday, at 17,968.

India VIX, which measures the expected volatility in the market, decreased to 15.75. 

NIFTY has supports at 17,880, 17,835, 17,800, 17,750, 17,710, 17,650 and 17,610. There are resistances at 17,950, 18,000, 18,175, 18,250, 18,320 and 18,400.

BANK NIFTY has supports at 39,500, 39,300, 39,000, 38,900 and 38,780. Resistances to watch out are 39,750, 40,000, 40,175, 40,400 and 40,500.

There is very little possibility that NIFTY will go below 17,600 this week. If the index opens with a gap-up tomorrow, whether NIFTY succeeds in sustaining above 18,050 or not will be crucial for the rest of the month.

What do you think will happen to Nifty this week? Will the index cross and sustain above 18,000? Or will we see profit booking? Let us know what you think in the comments section of the marketfeed app.

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