Last Week

Bulls of Dalal Street continued to keep a tight grip on the market for a second week, preventing falls in NIFTY.

NIFTY opened the week with a gap-up at 18,040 and fell heavily on Monday. This was gained back intraday and the market moved higher but fell on the next three days of the week. On Friday, bulls helped NIFTY to touch the weekly high and close with gains. NIFTY ended the week at 18,102, up 62 points or 0.3% from Monday’s opening. 

BANK NIFTY was highly bearish for the week. The index opened on Monday with a small gap-up at 39,674 and fell for the first four days of the week. After taking support at 38,350 level on Thursday, BANK NIFTY bounced back to close the week at 38,733, down 991 points or 2.21% from Monday’s opening.

IT, energy and Auto stocks did well in the market last week while Banks and Pharma stocks fell. Adani stocks did well in the market with Adani Enterprises hitting a 52-week high.

Nykaa was listed with good listing gains and moved up further, now more than 100% up from its IPO price with a market capitalisation of more than Rs 1.1 lakh crores. PayTM IPO was completely subscribed last week and will be listed on the market by Thursday.

U.S. Inflation data came out at the highest rate since 1990, signalling that the Federal Reserve would soon be forced to increase interest rates.

IndusInd Bank opened with a big gap-down and continued falling with complaints from an insider group. You can read more about it here.

Foreign Institutional Investors(FIIs) have net sold Rs 4,901 crore worth of equity shares in the week. But Domestic institutional investors(DIIs) kept up and net bought Rs 5393 crores worth of shares during the week. 

Week Ahead

Major corporate results from NIFTY 50 companies are now over. This Monday, our markets will react to the Q2 results from Hero MotoCorp, Grasim, Coal India, and ONGC published last day.

India’s retail inflation rate came out on Friday after market hours, and the numbers increased slightly to 4.48% in the month of October. It was 4.35% in September this year, and 7.6% in October last year.

Separately, factory output increased by 3.1% in September as measured by the Index of Industrial Production(IIP).

Listing of PB Fintech (operator of Policybazaar and Paisabazaar) will be on 15 November, Monday. The IPO was 16 times oversubscribed and is expected to open with a listing gain.

Energy supply concerns ahead of winter in Europe. I feel that there can be another round of strength in the Energy stocks in our market. Keep an eye out on heavyweights including Reliance and midcaps.

SGX Nifty closed in the green yesterday, at 18,173.50.

NIFTY has supports at 18,050, 18,000, 17,950, 17,880, 17,835, and 17,800.There are resistances at 18,175, 18,230, 18,320, 18,400, 18,500 and 18,600. Expecting a wild market with moves between 17,800-18,500 this week.

BANK NIFTY has supports at 38,600, 38,500, 38,350, 38100 and 38,000. Immediate resistances to watch out are 38,900, 39,000, 39,300, 39,500, 39,750 and 40,000.

On Friday, NIFTY had its largest call OI at the 18k mark. Once this was broken, we saw a rally in the index. Similarly in BANK NIFTY, the largest call OI is at 39,000 while the largest put OI is at 38,500. If there is a move breaking any of these levels, we can expect a more significant trend to that side.

What do you think will happen to Nifty and Bank Nifty this week? Can Banks recover from last week’s 2%+ fall? Let us know what you think in the comments section of the marketfeed app.

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