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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?

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!

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?