Last Week in Nifty

Nifty opened the week at 16,518 and moved up in the first 2 days of the week. On Wednesday, the market opened with a huge gap-up following a news in HDFC Bank’s counter. 

Thursday was a holiday on account of Muharram, and markets moved down with a huge gap-down on Friday. Nifty closed at 16,450, with a red candle for the week.

HDFC Bank opened with a huge gap-up on Wednesday after the Reserve Bank of India allowed the bank to start accepting credit card applications again.

Bank Nifty moved down after consolidation and closed at 35,033, with a red candle in the week.

FMCG stocks saw heavy buying in the week as smart money rolled into ‘safer’ sectors including FMCG and IT.

Midcaps and smallcaps continued their correction in the week, with most stocks closing in the red.

Metals fell heavily, especially on Friday with reports that international iron prices had fallen sharply. The index fell more than 7% in the week.

CarTrade listed in the market in the red after its IPO. Is this the beginning of unsuccessful IPOs.

Foreign Institutional Investors net sold Rs 4,314.4 crore worth of shares in the week, with currently the month’s net outflow now at Rs 819 crores.

Week Ahead in Nifty

Nifty is expected to hold steady in the week, just like the last. Even with the bearish sentiment, Nifty showed net consolidation in the week.

The uncertainties surrounding Reliance was over last week, and the stock had moved up. More up movement is expected. A similar case is seen with HDFC Bank now, and the stock may calmly move up next week.

Midcaps and smallcaps are expected to remain volatile this week, with the money continuing to move to largecaps.

The highest call OI stands at 16,600. Highest Put OI is at 16,000 and 16,400 levels. It is the monthly expiry this week, and we may see some volatility in the week with the tight open interest zones also.

16,290 will be the first support zone after which 16,000 is the next support for Nifty in the near term. 

Bank Nifty continues to struggle near the 35,200-35,300 levels. A breakout is expected in the index soon, with the index continuing to underperform. 

The air of confusion around HDFC Bank is now over, and the stock may slowly move up now. SGX Nifty is up more than 100 points and Monday may see a gap-up in the market.

What do you think will happen this week? Will Nifty see some correction? Or do you think there will be a bounce back in the coming week? Let us know in the comments section of the marketfeed app.

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