Nifty had one of the best rallies since June last week. IT stocks and Bank stocks pushed up the index last week. Let’s see what all might move Nifty next week.

Nifty vs 12,000

The 12,000 level is a strong emotional resistance for Nifty and the index is likely to see profit booking near this mark. With help from sectors other than IT/Banks, Nifty might try to break this level earlier in the week.

Donald Trump’s Health Issues

Even though The President of The United States is back to his official residence, fears about his health still continue to circle the markets. Any negative news would cause global markets to fall in fear.

Reliance yet to support Nifty

While Nifty went up over 4% in the last month, Reliance has fallen 2.75%. With support from Nifty’s biggest participant yet to come, the rally might just continue.

GST Council Meeting

The GST Council Meet last week was very inconclusive. We can expect a better session this week, with more meaningful updates. One thing I am personally looking forward to is a tax cut on 2-wheeler sales. You can read our in-depth article on GST compensation here.

Interest on Interest Case

With the Central Government toughening their voice against the Supreme Court, the interest on interest waiver on loans up to Rs 2 crores will probably be the judgement from the courts. While this is certainly what is expected, any different judgements might cause the markets to get uncomfortable.

Result Season Starting

With the much awaited results for the second quarter starting to come out, we may see some good opportunities this week. Many IT companies are set to announce their results this week, including Wipro and Infosys.

Dow Jones Futures set to trade in Green

With a positive season for US stocks incoming, Dow Jones future contracts are set to open in green for the week. This may give some positivity to Nifty on Monday. Apple is all set to launch their all new iPhones, and Amazon has their upcoming ‘Prime Day’. These will certainly boost investor sentiments for these stocks, and any movement in these will help move the IT sector in the US markets as well.

Rupee Gaining Strength. IT and Pharma fall incoming?

The rupee is gaining strength against dollar, or to be more precise, the dollar is weakening because of excessive printing of currency/monetary policy adopted by the US Federal Reserve. With this in mind, sectors which rely on export for revenue might see a correction in their stock prices in the coming week. Sectors which rely more on import and trade in dollars will benefit.

What are the Technicals Saying?

Nifty has formed a very bullish candle on its 1 day chart. While 12,000 will act as a strong resistance, a supportive global scenario might take the index to 12,100-12,150 this week. Retracements are expected, as profits will surely be booked. 11,800 will act as a good support, below which 11,600 might be the level to watch.

Hope you will all get to take good trades this week. Keep tuning into The Stock Market Show every night to get updates on Nifty’s movements and trading ideas. Also read tomorrow’s morning article to get any important updates regarding the markets.