Last Week in Nifty

Nifty moved up in the week after a fall on Monday. On Monday, there was a fall to shake off weak bulls in the market and support was taken at 15,650. The week was closed by Nifty at 15,923 at a fresh all-time high close. Bank Nifty also managed to cross 35,800 but could not close above it.

Market linked stocks including CDSL, CAMS and MCX performed well in the week. Also, midcap IT stock Happiest Minds closed the week with big gains.

Zomato’s historic IPO closed with 38.26 times oversubscription. GR Infra and Clean Sciences will get listed in the market tomorrow.

Inflation data from India came out slightly better than last month and than expected. Even though the U.S. inflation data came out much higher, the markets did not get affected that much.

Many IT stocks reported their results with Infosys disappointing while Wipro went well. Banks, FMCG, healthcare, IT and Metal stocks supported the market with Realty stocks being the outperformers.

HDFC Bank reported higher profit and revenue numbers, but the net NPA rates have shot up causing some concern.

Reliance announced they will be acquiring 40.4% in Just Dial through their subsidiary Reliance Retail. This along with HDFC Bank results will be important for analysing the market tomorrow morning.

Week Ahead in Nifty

Concerns of a third wave in India with still over 41,000 cases per day coming out despite the lockdowns. Concerns on the global event that is Tokyo Olympics exist in the general market along with high inflation numbers from around the world.

Nifty 50 companies including HCL Technologies, HDFC Life Insurance Company, Asian Paints, Bajaj Finance, Bajaj Finserv, Bajaj Auto, Hindustan Unilever, UltraTech Cement, JSW Steel, Reliance Industries, ICICI Bank and ITC will be reporting their results this week along with others.

Highest call OI stands at 16,000 along with Highest Put OI buildup at a very aggressive 15,900. Tomorrow’s morning market may see a downward move because of these aggressive option sellers. Yes, 16,000 is the major milestone for Nifty. 

15,750-15,800 will be immediate support for Nifty this week. Good support exists at 15,630, which is not expected to be broken unless there is some real bearishness in global markets.

Bank Nifty could not cross the 36,000 level but still ended the week in green. The very important level of 35,800 was crossed on Thursday, but on Friday it fell back down below this level.

FiIs continued to be net sellers for the whole week, while DIIs supported the market even at the tops.

If Nifty can sustain above the fresh all-time high, a further rally is being shown by the technicals. But otherwise, selling pressure may come in with this being just a false breakout.

So last week, our conclusion was that – “Experts are expecting consolidation. So do you expect the opposite?” and surely Nifty made fresh all-time highs. So you tell me in the comments of the marketfeed app- Do you think this rally will continue on to 16,000 and above this week?