Last Week in Nifty

Nifty continued its breakout for the second week, rallying from nearly 15,500 to now closing at 16,500.

Heavyweights pushed the index up with IT stocks the main strength for the market. From Monday to Thursday, a proper consolidation was seen 

FIIs continued to be net buyers this week and Nifty closed at 16,529, up more than 275 points or 1.7% from Monday’s open.

Bank Nifty could not continue the rally and cross last week’s high. The index 340 points or 0.95% up in the week but below the 36,200 mark.

IT stocks turned bullish with Nifty 50 stocks including Infosys, TechM and TCS hitting fresh high market capitalisations. 

Midcaps and smallcaps turned bearish once again with both indices down more than 1%. The indices had fallen sharply on fears that BSE is likely to bring additional measures to prevent unusual movement in mid and smallcaps with weekly, monthly and quarterly upper and lower circuits.

Foreign Institutional investors pumped in Rs 879.2 crore while Domestic Institutions bought for Rs 636.38 crores in the equity market.

Week Ahead in Nifty

Nifty was expected to be in consolidation last week, and was in exactly such a mood till Thursday.

On Friday, the index rallied up and crossed 16,500. The close was bullish and we may see a gap-up opening tomorrow.

Most Nifty 50 stocks have completed their results announcements for the April-Jun quarter and many underperformed. If you look at the charts of many Nifty50 stocks, they are still far from their 52-week highs.

4 stocks will be listing in the market tomorrow with us most interested in Devyani International’s listing.

Expecting consolidation in the general market along with a recovery rally in smaller stocks.

The highest call OI stands at 16,800. Highest Put OI is at 16,400 levels. This indicates bullishness with or consolidation with lot more put contracts being made in the market.

As we talked last week, 16,000 will act as a strong a strong support for Nifty in the near term. 

Bank Nifty would need to close above 36,200 to confirm bullishness and shoot up. The index is still quite far from its 52-week highs and a rally could take Nifty to higher levels.

FIIs did return as strong buyers in the market, and Nifty did rally this week. Can keep an eye on Nifty50 stocks which have been underperforming, including auto stocks.

Reliance also had a bullish close on Friday. If there is one thing that the market does not like, it is uncertainity. Now that the confusion regarding Reliance-Future Group deal is over, the stock may give a breakout soon.

What do you think will happen this week? Will Nifty continue its rally? Can midcaps recover, or will Mintu continue to flow into largecaps? Let us know in the comments section of the marketfeed app.