Tough fight seen between Bulls & Bears of the Dalal Street during the week ended May 27. Joining the global rally, the investors were in a buying mood following favorable retail earnings in the US. Receding FII selling also provided comfort to the domestic market in bringing down volatility. During the week Nifty dipped below the 16000 mark however managed to recover & closed in the green
Now, the focus has shifted to the RBI’s upcoming policy meeting which will be a key factor in the market, where they are expected to announce an additional policy rate hike of 25–35bps.
Weekly Index Roundup
Nifty (up 0.53%) – Open 16290.95, High 16414.70, Low 15903.70, Close 16352.45
Bank Nifty (up 3.90%) – Open 34321.40, High 35694.85, Low 34115.80, Close 35613.30
Sensex (up 1.17 %) – Open 54459.95, High 54936.63, Low 53425.25, Close 54884.66
India Vix – down 5.45% to end at 21.4800 levels on weekly basis
FII’s: Net Sellers: (-9688.62 Crores) on a weekly basis
DII’s: Net Buyers: (+11257.63 Crores) on a weekly basis
Weekly Bullish Sectors – Financial services (+4.34%), Auto (+3.33%),
Weekly Bearish Sectors – Metal (-8.77%), Energy (-3.37%)
Weekly Top Gainers Stocks – HDFC Life (+9.80%), Kotak Bank (+6.50%)
Weekly Top Losers Stocks – Divislab (-18.35%), JSW Steel (-13.10%)
Nifty Open Interest Put Call Ratio (PCR): 1.15
Maximum CE Open Interest Strike: 16500
Maximum PE Open Interest Strike: 16100
Bank Nifty Open Interest Put Call Ratio (PCR): 1.14
Maximum CE Open Interest Strike: 36000
Maximum PE Open Interest Strike: 35500
(The maximum CE PE open interest strike rate indicates that the market is likely to move in that particular range in the coming days)
Weekly and Intraday View of Nifty & Bank Nifty
Nifty
Nifty failed to hold below the 16000 mark during the week and closed around the 16352.45 level, which is a positive sign for the bulls.
Nifty formed a bullish pin bar candle on the daily chart, as it reversed North from the strong support of the weekly upwards sloping trend line.
A recent swing high was formed around 16400. A sustainable move above 16400 on hourly closing basis will confirm the bullish trend reversal.
Nifty Daily line chart and RSI indicate higher chances of the index rising from the current level.
As far as strategy point of view is considered for the coming week, a fresh sell signal would only trigger below 15740 in Nifty. Till then one should have an optimistic approach to the market.
Weekly Support and Resistance (Spot levels)
The short-term support for the Nifty is 15900. A sustainable move below this then we will see more selling pressure towards the downside that can take a breath around 15500 levels. And if it further breaks that level then a major selling will come which will push Nifty towards 15150.
On the upside, the resistance is around the 16500 breakouts from that level will take the index towards 16700 and then to the 16900 in the coming days.
Nifty Futures Strategy for Monday
Resistance at 16400 if it breaks and sustains above that level, then it will take it to 16500-16650 levels.
Support at 16200 breaks and sustain below that level will take it towards 16100–16000.
Bank Nifty
Financial benchmark index Bank Nifty showed more buying strength throughout the week as compared to nifty.
On the weekly chart, the index has formed a strong bullish candle.
All important oscillators are now indicating a positive bias in the index. The RSI is now started trading above the 50 levels on the daily chart.
The index has also given an upside breakout from the 20-period EMA (Exponential Moving Average) on daily charts, which is another sign of positivity.
Considering the technical evidence we believe that Bank Nifty index indicators and inter-market analysis indicate higher chances of a breakout on the upside in the index.
Weekly Support and Resistance (Spot Levels)
The short-term support for the Bank Nifty is 35000. If it breaks that level, then it could take the markets down to 34200—33000.
On the upside, the resistance is at 35800—36000. A sustainable breakout from that level will lead to a fresh upside level in the coming days.
Bank Nifty Futures Strategy for Monday
Bank Nifty Futures has resistance at 35800 if it breaks and sustains above that level then it may go till 36050–36300.
Support at 35300 breaks and sustain below that level will take it to 35000—34700 on the downside.
Top Stock Picks Of The Week
TANLA (CASH)
Stock is trading near its resistance zone and formed a range. If break and sustain above given levels, then we may expect a good up move in a shorter time frame.
Strategy – Traders can grab TANLA above 1330 for the target of 1380 and then 1420 in the coming days. Support and stop loss will be below 1270 on a closing basis.
SBICARD (FUTURES)
The stock has formed a cup and handle pattern on the hourly chart. We will expect a major upside move from current levels in this stock.
Strategy – Traders can grab SBICARDS Futures above 772 for the targets of 789 and then 798 in the upcoming sessions. Support and stop loss will be below 764 on a closing basis.
Trade safely with levels. For daily levels of Nifty and Bank Nifty follow our blog regularly.
To get notifications of all our updates on your WhatsApp. Click on the image given below.
We are a SEBI registered investment advisor. The above free information is for education/knowledge purposes. Read the disclaimer on our website before investing.