Domestic markets declined for the second week in a row, dragged by losses in information technology, banking and realty stocks, amid hawkish comments from U.S. Federal Reserve Chair Jerome Powell, reactions to March-quarter earnings. Inflation concerns, geopolitical tensions leading to supply issues and volatility in crude oil prices and IMF’s lowering of growth estimates also added weighed on sentiment. For the whole week, the benchmarks indices Nifty and Sensex fell for three sessions and rose on two days.
Now, what next??
Markets will react to the ICICI Bank numbers in early trade on Monday. Besides, global cues like updates on the Russia-Ukraine crisis, and China’s COVID situation will also remain on the participants’ radar. The slide in the Nifty index has faded hopes for a directional move and we may see further consolidation ahead. Amid all, participants should maintain focus more on stock selection and overnight risk management.
LIC IPO UPDATE
LIC India is looking to raise $3.9 billion through an initial public offering of state-owned Life Insurance Corp., according to people with knowledge of the matter, about 40% lower than previous estimates as the war in Ukraine dents valuations.
Weekly Index update
Nifty (down 1.74%) – Open 17183.45, High 17414.70, Low 16824.70, Close 17171.95
Bank Nifty (down 3.79%) – Open 36833.15, High 37123.55, Low 35926.30, Close 36044.75
Sensex (down 1.96 %) – Open 57338.58, High 57991.53, Low 56009.07, Close 57197.15
India VIX – up 2.80% to end at 18.3525 levels on a weekly basis
FII’s: Net Sellers: (- 18443.81 Crores)
DII’s: Net Buyers: (+14394.37 Crores)
Weekly Top Bullish Sectors – Auto (+3.30%), Energy (+2.82%)
Weekly Top Bearish Sectors – IT (-5.49%), Financial service (-4.20%)
Top Gainer Stocks for the week – Coal India (+8.33%), Reliance (+8.08%)
Top Losers Stocks for the week – Infosys (-9.33%), HDFC Bank (-7.46%)
Nifty Open Interest Put Call Ratio (PCR): 0.75
Maximum CE Open Interest Strike: 18000
Maximum PE Open Interest Strike: 17000
Bank Nifty Open Interest Put Call Ratio (PCR): 0.58
Maximum CE Open Interest Strike: 36500
Maximum PE Open Interest Strike: 36000
(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 and Bank Nifty
Nifty
Nifty formed a Doji candlestick pattern on weekly charts and took good support from the previous support zones if it breaks below these levels then it may lead to more weakness.
A momentum indicator RSI has dragged down from the bullish zone and traded in a consolidation zone.
Weekly Support and Resistance (Spot)
The short-term support for the Nifty is 17000. If it breaks that level, the short-term trend will turn down and the bears will take over. That could take the markets down to 16600–16230.
On the upside, the resistance is at 17500–18200 and until we do not get past that, the current range-bound movement will continue
Nifty Futures strategy for Monday
Strategy – Nifty Future has resistance at 17320 if breaks and sustains above 17320 will take it to 17390-17450 levels.
Support at 17100 breaks and sustain below 17100 will take it to 17000–16900 levels.
Bank Nifty
On weekly charts, the financial index has formed a bearish candle, taking the rejection from the middle band of the Bollinger.
The financial benchmark index formed a bearish candle on daily charts and gave a closing below 200-EMA, which indicates more weakness for an upcoming session.
All the PSU and PRIVATE banks ended on a negative note.
Weekly support and resistance (Spot)
The short-term support for the Bank Nifty is 35500. If it breaks that level, the short-term trend will turn down and the bears will take over. That could take the markets down to 35000–34400.
On the upside, the resistance is at 37000–37800 and until we do not get past that, the current range-bound movement will continue.
Bank Nifty Futures strategy for Monday
Strategy – Bank Nifty Future has resistance at 36500 if it breaks and sustains above 36500 then it will take it to 36800–37000 levels.
Support at 35900 breaks and sustain below 35900 will take it to 35700–35500 levels.
Top Stock Recommendations For The Week
BBTC (CASH)
The stock has formed an inverse head and shoulder pattern on the daily chart. A neckline breakout is seen in the stock in the last trading session. We will expect a fresh upside move in the coming days.
Strategy – Traders can enter around 950 for the upside move till 1020 and then to 1050 levels in days to come. Support and stop loss below 880.
BRITANNIA (FUTURES)
The stock is ready to give a range breakout on a daily time frame, which indicates a bullish momentum for an upcoming session. The momentum indicator RSI too supports our bullish view of this stock
Strategy – Traders can grab Britannia Futures above 3400 for the target of 3450 and then 3500 in the coming days. Support and stop loss below 3340 on a closing basis.
Trade with levels. Follow our Nifty and Bank Nifty daily blog for intraday levels and strategies.
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