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Home » Weekly Update : Bears continued to dominate and dragged the index lower. Reliance and Aramco deal cancellation will impact the market in coming week.
Equity Weekly Update Morning Nifty Update

Weekly Update : Bears continued to dominate and dragged the index lower. Reliance and Aramco deal cancellation will impact the market in coming week.

Nifty Bank Nifty Weekly Update 22 to 26 Nov 2021

 

 

Last week we have seen downward move in major benchmark index Nifty and Bank Nifty. Now for the coming week market may remain under pressure due to the to the news of scrapping of the controversial farm laws. Decision of Reliance Industries and Saudi Aramco to re-evaluate the proposed investment in the oil-to-chemicals business will also impact. Stock specific will be expected with the VWAP level of 17950 will be the immediate hurdle in Nifty.

 

 

MARKET SUMMARY

 

Domestic markets witnessed a negative week of trading, with the benchmark index trending lower throughout the week. The bears continued to dominate and dragged the index lower as weak global cues impacted sentiment. On weakly basis, both the Nifty & Bank Nifty index closed with loss of nearly 2%.

During last week many big IPO’s listed on NSE, the opening of week was marked by the strong listing gains showcased by Sigachi Industries listing at gains of about 270% & Policy Bazaar debuted with gains of 22.7%

Whereas, On Thursday, PayTM disappointed IPO investors as stock hit 20% lower circuit to sit at Rs 1,564 per share, down 27.26% from the IPO price of Rs 2,150 a piece.

On the sectoral front,

On weekly basis, all sectors ended in red as weak global cues hampered the investor’s sentiments. Nifty Metal index shed 5.30 %, while the Nifty PSU Bank and Reality indices were down around 3.50 %each.

During last week FII were the net sellers as they sold 4411 crores worth of shares. On the other hand DII were the net buyers as they bought 3927 crores worth of shares. Therefore there were 484 crores of institutional selling.

 

Major Weekly Gainer and Loser of Nifty 50


Maruti Suzuki (up 8.52%) , Power Grid (up 5.77%) & Asian Paints (up 3.33%)were among the top gainers.

Coal India (down 8.12%), Tata steel (down 7.82%) & Shree Cement (down 7.56%) were among top losers.


Now, what’s next?

We reiterate our cautious view on the markets, given the feeble global cues. Besides, the charts are also indicating the prevailing corrective move to extend further. Considering the scenario, traders should limit leveraged positions and maintain a few shorts also. Beside all global cues, Reliance and Aramco deal cancellation will also definitely hit it’s share price which will let the market to go down.

 

 

 

Technical View of Nifty and Bank Nifty 

 

 

Nifty

 

Upward momentum in Nifty remains short-lived during the week, as selling pressure from the highs has put the Index to closed lower.

After a flat to a positive start of the week, the major benchmark index got trapped into the bear’s grip with intense selling. The index stayed under heavy bearish pressure throughout the week and touched its weakest level since last month near, 17685 and ended the week below 17800.

At the start of the week, the Index continued to be weighed down and volatile throughout the week due to global cues and FII continuous selling.

Technically, Nifty formed a bearish candle on a daily as well as on a weekly scale. Also gives a breakdown of the “HEAD AND SHOULDER” pattern on a daily time frame. This indicating that the index lost its bullish momentum and the overall chart paints a bearish picture for the next week.

Nevertheless, the bearish trend remains firmly in place, as mostly all the moving average maintains their bearish slope. Also, the Relative Strength Index (RSI) indicator has lost its bullish strength and stabilized below 45.

In case buyers manage to lift the index back above 17900 and hold it there, then we will see additional gains. On the downside, support could be seen at 17650—–17580. (Spot levels)

Our advice would be that traders and investors should avoid building a new buying position until further improvement in the spread.

On the options front, the Nifty open interest put-call ratio is around 0.64 levels. Maximum call open interest addition was seen at 17750. Whereas maximum put open interest is around 17900 levels. This indicating a range of trading in upcoming sessions.


Weekly Support and Resistance (Spot levels)


The short-term support for the Nifty is 17650. 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 17580–17,450.

On the upside, the resistance is at 18,000—-18200 and until we do not get past that, the current range-bound movement will continue.

 

Nifty Futures Strategy for the day

Technical Chart of Nifty
Technical Chart of Nifty

 

Strategy – Either buy above 17800 for the targets of 17900—18000. Or Sell below 17700 levels for the downside targets of 17600.

 

 

 

Bank Nifty

 

After a flat to a positive start of the week, the Bank Nifty faced resistance near to its previous week’s low level and from that vicinity of the 39100; it slipped at reach to its lower end of the range of 37760 and ended below 38000.

At the start of the week, the Index continued to be weighed down and volatile throughout the week due to global cues and FII continuous selling.

Bank Nifty futures closed 2.9% down on weekly basis. Its futures closed with a premium of around 110 points to its spot.

Technically, Bank Nifty formed a bearish candle on a daily as well as on a weekly scale. Also, the index trading below the upside trend line comes from 25 October high which indicates that the index has lost its bullish momentum before reaching back above 38500 and holding it.

RSI indicator on daily chart retreated to below 40 suggesting that the index is having a difficult time preserving its bullish momentum. Mostly all the moving average maintains their bearish slope.

At the same time, technical indicators hold within negative levels with uneven directional strength but still hint at another leg lower.

Almost all the private banks ended in red on the weekly basis and did not support the Bank Nifty index.

The immediate support is the 37900 with a break below it, probably resulting in the test of the 37700 price zone. On the other hand, a correction advance could reach 38200 first and then 38350 area later. (Spot levels)

Our advice would be that traders and investors should avoid building a new buying position until further improvement in the spread.

Weekly Support and Resistance (Spot levels)

 

The short-term support for the Bank Nifty is 37600. 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 37350.

On the upside, the resistance is at 38350—38500 and until we do not get past that, the current range-bound movement will continue.

 

Bank Nifty Futures Strategy for the day

 

Technical Chart of Bank Nifty
Technical Chart of Bank Nifty

 

Strategy – Either buy above 38100 for the targets of 38250–38350. Or Sell below 38000 levels for the downside targets of 37850 and then 37750.

 

 


Top Stock Recommendations for the upcoming week

 

 

GICRE (CASH)

 

GICRE

Technical Chart of GICRE
Technical Chart of GICRE

 

The stock formed a bullish pattern and ready for the fresh breakout on the daily chart. We will expect a huge upside move-in days to come.

Strategy – Traders can buy above 147 for the upside move till 155 and then to 160 levels in days to come. Support and stop loss below 140 on a closing basis.

 

 

 
Hindustan Unilever (FUTURES)

 

Hindustan Unilever

Technical Chart of Hindustan Unilever Futures
Technical Chart of Hindustan Unilever Futures

 

From last few days we have seen good consolidation the stock. The stock holds its support and is ready for up move-in days to come, with a small stop loss.

Strategy – Traders can go for buying above 2405 for the upside move till 2430 and then to 2450 levels in the coming days. Support and stop loss below 2370 on a closing basis, break & sustain below 2370 will negate our bullish view in the stock.

 

 

Traders can trade safely in Nifty, Bank Nifty and Top Stock Recommendations with given levels only. To get real time stock market updates, news and recommendations on your WhatsApp, Click on the image given below.

 

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We are a SEBI registered investment advisor. The above free information is for education/knowledge purposes. Read the disclaimer on our website before trading / investing.

 

 

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