Last Week in Nifty

Let us look at what all happened in the last week, and try to understand Nifty for the next week ahead.

For the last whole week, Nifty traded in a 280 point zone. Monday, Nifty opened at 15,915 at a fresh all-time high. Every single day from Monday till Thursday, Nifty opened with a gap-up and fell. 

But on Friday, Nifty opened with a gap-up and created a green candle in the daily charts.

India VIX closed at a post-Covid low of 12 with options premiums continuing to fall.

Happiest Minds, Tata Elxsi and Route Mobiles were some of the crowd favourite stocks that rallied this week.

Tata Motors reported it will be launching 10 electric vehicles by 2025. This also coincided with Tata Nexon EV hitting a new sales high in June 2021.

Auto sales data came out last week, with data showing good sales for June as expected. After the lockdown in April and June across the country, there was a lot of pent-up demand in the sector. Nifty Auto still closed 0.2% down.

Nifty Pharma performed the best last week with Nifty Metal performing the worst.

U.S. jobs data looked positive, with a good number of jobs being added to the economy.

Foreign institutional investors (FIIs) have been net sellers for the last three months but outflows have slowed down. Last week, FIIs sold equities worth Rs 5,416.84 crore, while domestic institutional investors (DIIs) bought equities worth Rs 6,418.3 crore.

As expected, the manufacturing sector showed a slowdown in the month of June. At a level of 48.1, it showed a contraction. The PMI was 50.8 in May. Above 50 means expansion, below 50 means contraction.

Week Ahead in Nifty

Experts see the Nifty to move ahead with 15,500 as strong support. Reopening of the economy, speeding up vaccination rates and continuing low-interest rates will help the market.

The services sector PMI from India will be out on July 5.

Data of Services PMI from the U.S. is also expected on Tuesday, July 6.

Crude oil prices can continue to be watched as OPEC+ will sit for discussion again on Monday. They had failed to reach a deal on oil output policy on Friday because the United Arab Emirates blocked some aspects of the pact.

High chances of Asian markets to trade in the green, and Indian markets to open with a gap-up tomorrow.

Results season is starting once again as Q1 has ended. The season is starting with TCS coming out with their results on July 8th.

15,500 is good support for Nifty this week. 15,900 is the next immediate resistance for the index. There is a good straddle being built up in 15,700, showing there is a chance for consolidation again. If there is a sharp crossing of 15,900, we may also see 16,000 and further this week.

34,000 to 35,500 is a big consolidation zone for Bank Nifty.

What do you think? Will Nifty break out above 15,900 in the week and touch fresh all-time highs? Or will weakness continue?