Indian Stock Market started the week on a strong note but couldn’t build upon the gains, with global markets looking upbeat in the lack of any negative news. As the week continued, the trading range for key indexes shrank. As we stepped into a new series, month and a quarter on Friday, markets felt some tremors initially from the major global peers; but it has managed to withstand it successfully and in fact, due to a smart V-shaped recovery in the latter half, the Nifty managed to reclaim 15700. Bank Nifty too closed above 33500 mark.
Now, What’s Next?
The latest consolidation period emphasizes caution, as seen by the recent drop in global indexes. We maintain our recommendation to focus on sectors/themes that are resilient and attract buying interest on declines.
Weekly Index Update
Nifty (up 0.34%) – Open 15926.20, High 15927.45, Low 15511.05, Close 15752.05
Bank Nifty (down 0.26%) – Open 34126.20, High 34147.50, Low 33080.45, Close 33539.45
Sensex (up 0.34%) – Open 53468.89, High 53509.50, Low 52094.25, Close 52907.93
India Vix – up 3.41% to end at 21.25 levels on a weekly basis
FII’s: Net Sellers: (-6836.71 Crores) during the week
DII’s: Net Buyers: (+5926.47 Crores) during the week
Weekly Bullish Sectors – FMCG (+2.5%), Realty (+2.1%)
Weekly Bearish Sectors – Consumer Durables (-1.2%), Oil & Gas (-0.6%)
Top Gainers Stocks of the week – ITC (+6.96%), Hindalco (+5.85%)
Top Losers Stocks of the week – Indian Oil Corporation (-31.29%), Indiabulls Housing (-5.00%)
Nifty Open Interest Put Call Ratio (PCR): 1.08
Maximum CE Open Interest Strike: 16000
Maximum PE Open Interest Strike: 15500
Bank Nifty Open Interest Put Call Ratio (PCR): 1.06
Maximum CE Open Interest Strike: 34000
Maximum PE Open Interest Strike: 33000
(The maximum CE PE open interest strike rate indicates that the market is likely to move in that particular range in the coming days)
Technical View of Nifty and Bank Nifty
The Nifty has formed a Hammer candlestick formation on weekly charts.
It started the week on a strong note but couldn’t build upon the gains, and witnessed consolidation throughout the week & the last session had sharp swings in both directions.
Overall structure shows that the index is likely to witness consolidation in the range of 15500–15900 in the coming sessions.
Weekly Support and Resistance (Spot levels)
Near term support zone was placed around 15700–15650, which the index breached on July 01st, however, received support near 15500. Overall structure shows that the index is likely to witness consolidation in the range of 15500–15900 in the coming sessions.
It is expected to face selling pressure as it approaches the 15900–16000 zone. On the other hand, dips towards 15600–15500 can be taken as buying opportunities.
Nifty Futures Strategy for Monday
Nifty Future has resistance at 15800 if breaks and sustains above that level, then it will take it to 15900-16000 levels.
Support at 15600 breaks and sustain below that level will take it towards 15500–15400 levels.
Bank Nifty index has formed a falling channel pattern, technically this pattern suggests higher volatility in the near term.
The weekly chart index has given a breakout from its previous two weeks’ prevailing trading range.
In the meantime, the index has rebounded from the oversold Relative Strength Index(RSI) indicator on the daily chart and holds above the 50 levels.
The near-term outlook could be bullish, and a breakout from the downward sloping trend line will lead to further upside in the coming days.
Any decisive breakdown from the support levels will negate our bullish view.
Weekly Support and Resistance (Spot Levels)
The short-term immediate support for the Bank Nifty is 33000. If we break that level, then it could take the markets down to 32000–31000.
On the upside, the resistance is around 34000, sustainable breakout from that level will lead to an upside level in the coming days.
Bank Nifty Futures Strategy for Monday
Bank Nifty Future has resistance at 34000 if breaks and sustain above that level then it will take it to 34250–34450.
Support at 33700 breaks and sustain below that level then it will take it to 33500—33300.
Top Stock Recommendation Of The Week
Coal India (Futures)
The stock has formed a bottom on the chart and will likely trend higher.
Strategy: Traders are advised to buy above 181 levels for the upside target of 184 and then to 187 in the days to come.
Support and stop-loss will be below 178 on a closing basis.
Trade safely with levels. Visit our blog regularly in the morning to read daily support and resistance levels of Nifty and Bank Nifty.
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