LAST WEEK
NIFTY opened the week with a huge gap-down on Monday at 17,188 due to negativity in the global markets. Nifty consolidated on Tuesday before the final-hour fall and closed below 17,000. Wednesday saw an up-move and Thursday saw a continuation. However, the markets fell on Friday and Nifty closed at 17,172, down by 304 points or 1.74%.
BANK NIFTY opened with a gap-down at 36,852 and took support at 36,500. But BNF saw a huge fall on Tuesday and 36,500 was breached. Wednesday saw consolidation after a gap-up opening. Thursday was a proper trending day and BNF closed just below 37,000. Friday saw an unusual fall and BNF closed the week at 36,045, down by 1419 points or 3.79%.
IT fell by more than 5% and AUTO moved up by more than 3%.
Foreign Institutional Investors net sold shares worth Rs 18,000 crores last week.
Domestic Institutional Investors net bought shares worth Rs 14,000 crores.
It was a long vacation and NIFTY opened lower as the US markets had closed in the red on Thursday. Russian Foreign Minister said that Russia has entered the second phase in the war and our markets fell with the news. There was a fall in the west as well but they recovered soon. FII selling and Retailers following them in panic would have been the reason. As the US markets did not fall, Nifty recovered the fall in the next days but the inflation worries and global negativity has taken our markets again to the lows.
ICICI Bank has come up with a very good result. HCL Tech results were just in line with the expectations.
The US markets had moved up consecutively earlier in the week but fell heavily on Friday. S&P VIX spiked by 25% on Friday.
The Chinese markets were down with Covid cases spiking.
Earnings were not up to the mark overall. Inflation and crude oil prices have triggered their selling and experts feel that they are moving away from oil-importing countries. Crude oil price is at $107 now.
LIC IPO size has been reduced to 3.5% from 5% of the market cap. We can expect the IPO by Mid-May.
SGX NIFTY is at 17,015.
INDIA VIX is at 18.35.
WEEK AHEAD
NIFTY has supports at 17,150, 17,065, 17,000 and 16,880. We can expect resistances at 17,230, 17,310 and 17,400.
BANK NIFTY has supports at 35,600, 35,400 and 35,000. Resistances are at 36,400, 36,600 and 37,000.
NIFTY has the highest call OI build-up at 18,000 followed by 17,500. The highest put OI build-up is at 17,000 followed by 16,500.
BANK NIFTY has the highest call OI build-up at 37,000 and the largest put OI build-up is at 36,000.
The market will first react to ICICI Bank results.
It will be interesting to see how the market opens tomorrow seeing the put build-up and price action. Price action is rather bearish whereas you can see a large put OI build-up at 17,000, which is even larger than the 17,500 call OI build-up.
Also, there is negativity in the US market whereas ICICI Bank results came out much better than expected. There can be profit-booking as well. All the ingredients mentioned above will make the pre-market session interesting.
The focus should be on inflation, Ukraine and Covid cases in China.
Let us know your expectations for the week in the comments section!