Last Week in Nifty

Nifty opened the week at 16,770 on Monday and was incredibly bullish for the week.

With many green days, the index ended at 17,340 with power. Except for Wednesday, all days Nifty closed 100-150 points in the green.

The broader markets also recovered with the realty index going up more than 10% last week. 

With positivity from Jerome Powell’s statements on the U.S. economy, all global markets were rallying.

Reliance gained power and touched fresh 52-week highs by gaining nearly 6% last week. HDFC Bank also gained in the week with the bullishness we expected last week.

Bharti Airtel gained more than 10% in the week, with fundraising plans and noting increasing tariffs by Chairman Sunil Mittal.

Auto stocks were generally weak even though the index ended in green. Auto sales data were not great for Maruti and M&M. Tata Motors showed a good increase in sales for August.

Zomato shot up to all-time highs with more than a 15% gain this week to near Rs 150. Major investor of the company, Info Edge also closed with gains of nearly 5%.

Laxmi Organics also gained 10% in the week, now extending gains more than 160% after their IPO in March. 

Bank Nifty shot up in the week gaining more than 3%. The index gained to cross even 37,000 for the first time since February. However, the index closed below this mark for the week.

GDP data came out highly positive for the last quarter in India. The U.S. showed an unemployment rate at a 17-month low even while reporting lower than expected jobs growth.

Foreign Institutional Investors returned as buyers and net bought Rs 6,867 crores worth of shares in the week. Domestic Institutional Investors have sold for over Rs 1,421 crores this week and started booking profits.

Week Ahead in Nifty

Volatility is slowly returning in the market with India VIX moving 10% up this week. Profit booking mentality is taking over the market.

Heavyweights Reliance and HDFC Bank might take a small rest after their rallies in August. Reliance still has power with its fresh breakout in the last week.

The highest call OI stands at 17,00 followed by 16,500. Highest Put OI is at 17,000 followed by 17,200. 

16,500 will be the first important support zone for the zone for Nifty with stronger support at 16,300. 

Bank Nifty has formed high call option interest at the 37,000 mark, indicating some slowdown in the index. We will have to keep watching this level in the index and if it will be broken.

There are only 4 trading days this week, with Friday being a holiday on account of Ganesh Chathurthi.

IIP Data, which shows the industrial output for the month of July is coming out on Friday. The data is expected to come positive and give the bull rally some validation.

Market experts are expecting Nifty to touch 17,500 soon, but profit booking continues as a fear. The 17,200 and 17,000 levels will act as good supports going ahead.

Brent Crude Oil prices showed a breakout in the charts, and we can expect higher petrol prices is the only certainty we have for the coming week.

What do you think will happen to Nifty this week? Will the market see profit booking or continue the rally? Let us know what you think in the comments section of the marketfeed app.