Last Week in Nifty

Nifty continued consolidation, once again failing to break the all-time high at 15,900 resistance. The week opened at 15,800 and closed at 15,690, down 0.73% for the week.

Services PMI was announced last week at 42, an 11-month low. It was expected to fall because of the lockdowns in the past month.

GST Collection also came down below Rs 1 lakh crore, a 9-month low.

Tata Motors fell 10% on Tuesday afternoon, with Jaguar Land Rover saying that they will have a negative free cash flow for the upcoming quarter. The stock is down 11% for the week. Nifty Auto fell 2.5% in the week.

Kerala’s Kitex hit a 20% Upper Circuit on Friday after announcing they will be leaving the state.

Heavyweights remained weak, with midcaps giving a rally for the week. Nifty Realty and Nifty Metal performed well in the week.

Nifty Metal rallied with member stocks going up. China failing to control price inflation of metal and aluminium prices gaining back has given confidence to traders. Tata Steel has reached back to its all-time highs after June month fall. 

Crude oil prices remained volatile with the Saudi-UAE fight going in the OPEC+ group. There are reports from the U.S. showing there is high demand for oil with the summer tourist season in the country. Note – India likes lower crude oil prices as it is an importing country.

TCS results came out in the week with profits of Rs 9,008 crores but still did not meet the street expectations. The stock remained weak.

Reliance broke 2,100 downwards again and is struggling to move back up. Along with this, FIIs sold more than Rs 4,000 crores worth of equity this week. A weaker rupee has been causing problems for the market. These numbers will need to change for Nifty to break out this week.

Week Ahead in Nifty

Realty shares closed bullish and expected to continue the rally if Nifty consolidates. If Nifty is bullish, then these stocks might take a back-seat.

Clean Science and GR Infra IPOs saw good responses from investors and both will list on July 19th. The much-awaited Zomato IPO will open on July 14th.

More Q2 results are expected this week. On Wednesday, can expect Infosys and Wipro on Thursday. 75 companies are expected to announce Q2 results including Mindtree, LTI, Dodla Dairy, 5 Paisa, Angel Broking, Cyient, Tata Elxsi, Den and Tata Steel Long Products. 

CPI Inflation data for June will be out on Monday and Wholesale Inflation data on Wednesday. A high inflation rate may risk action from the Reserve Bank.

With the bullish close of U.S. and European markets on Friday, there are high chances of Asian markets to trade in the green. Indian markets are expected to open with a gap-up tomorrow.

15,500 continues to be good support for Nifty this week. But if we are being a bit more aggressive, the correct range for Nifty is between 15,630 and 15,915. Breaking these levels and sustaining above them may give further moves to either side.

35,800 has been respected by Bank Nifty multiple times in the past months. The index is struggling to break it. Will need some strength in Kotak Bank, which is underperforming even other private banks. 34,000 will be a good support for the index is turning really weak.

Experts are expecting consolidation. So do you expect the opposite? What do you think? Let us know in the comments section of the marketfeed app!