The Indian stock market closed the highly volatile week on a negative note ahead of the opening of LIC IPO in the week starting May 2. Benchmarks Nifty 50 and Sensex declined 0.4% and 0.2% respectively for the week ended April 29. The indices ended in the red on three occasions and closed on a positive note in two sessions
On Friday, the headline indices corrected more than half percent weighed down by profit-booking in energy, banking, and media stocks.
Now, what’s next??
In the forthcoming week, volatility is likely to continue as the focus will shift to central bank policy meetings at both the US Federal Reserve and the Bank of England. Apart from this, this slew of economic data releases, monthly auto sales data, and ongoing earnings season will keep investors busy. The mother of all IPO – LIC will also hit Dalal Street on 04th May 2022 which could pull out liquidity from the market and exert some selling pressure. Traders should keep an eye on sectors like hospitality, multiplex, transportation etc. as ease in Covid restrictions in India is a boost for these sectors.
Weekly Index Update
Nifty (down 0.40%) – Open 17009.05, High 17377.65, Low 16888.70, Close 17102.55
Bank Nifty (up 0.12%) – Open 35792.35, High 36718.80, Low 35511.40, Close 36088.15
Sensex (down 0.24 %) – Open 56757.64, High 57975.48, Low 56356.87, Close 57060.87
India Vix – up 5.79% to end at 19.4150 levels on a weekly basis
Weekly FII’s DII’s Buying Selling Figures
FII’s: Net Sellers: (-11446.52 Crores)
DII’s: Net Buyers: (+9703.04 Crores)
Weekly Top Bullish Sectors – FMCG (+1.13%), Auto (+0.45%)
Weekly Top Bearish Sectors – IT (-2.48%), Metal (-1.76%)
Top Gainer Stocks for the week – HDFC Life (+1.93%), Tata Consumer (+1.49%)
Top Losers Stocks for the week – Axis Bank (-6.57%), Coal India (-3.89%)
Nifty Open Interest Put Call Ratio (PCR): 0.71
Maximum CE Open Interest Strike: 18000
Maximum PE Open Interest Strike: 17000
Bank Nifty Open Interest Put Call Ratio (PCR): 0.57
Maximum CE Open Interest Strike: 37000
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 on Nifty and Bank Nifty
Nifty
The Nifty witnessed a volatile action in the week gone by & ultimately formed an Inside bar on the weekly chart. For the last couple of weeks, the index is near its key weekly moving averages & this has developed as a triangular pattern on the daily chart.
The index faced resistance near the junction of the swing high on the daily chart & the 20 DMA, near 17400. Thereon the Nifty nosedived towards the end of the session & formed a bearish outside bar as well as an Engulfing bear candle on the daily chart.
Weekly Support and Resistance (Spot Levels)
The short-term support for the Nifty is 16900. If we break that level, the short-term trend will turn down and the bears will take over. That could take the markets down to 16500–16100.
On the upside, the resistance is at 18000–18600 and until we do not get past that, the current range-bound movement will continue
Nifty Futures strategy for Monday
Nifty Future has resistance at 17300 if it breaks and sustains above 17300 then will take it to 17380–17450 levels.
Support is at 17000 breaks and sustains below 17000 will take it to 16870–16800 levels.
Bank Nifty
The Financial benchmark index trimmed all of its gains in the late afternoon session on Friday and ended in the red. The index formed a bearish candle on a daily time frame.
We’ve been seeing the index oscillating in a broader range for the last two weeks and there’s no clarity over the next directional move yet.
Only HDFC BANK and KOTAK BANK ended on a positive note.
Weekly Support and Resistance (Spot Levels)
The short-term support for the Bank Nifty is 35200. If it breaks that level, then the short-term trend will turn down and the bears will take over. That could take the markets down to 34800—34000.
On the upside, the resistance is at 38000–38800 and until we do not get past that, the current range-bound movement will continue.
Bank Nifty Futures strategy for Monday
Bank Nifty Future has resistance at 36400 if breaks and sustains above 36400 then will take it to 36900–37100 levels.
Support at 35900, break and sustain below 35900 will take it to 35700–35500.
Top Stock Recommendations for the week
GOKEX (CASH)
Gokaldas Exports, the stock posted strong numbers on Friday and react strongly after the results. We have seen a sharp bullish candle on the daily chart. Now we will expect a fresh upside run in this counter in the coming days.
Strategy: Traders can grab it around 388 for the initial upside target of 415 and then to our next target of 430 in days to come. Support and stop loss will be below 360.
INDHOTEL (FUTURES)
A continuous bullish trend seen in this counter buy from every breaking of previous high will be entering opportunity in it.
Strategy: Traders can grab INDHOTEL Futures above 261.70 for the target of 265 and then 268 in the coming days. Support and stop loss will be below 258 on a closing basis.
Trade with levels. Follow our Nifty and Bank Nifty daily blog for intraday levels and strategies.
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