During the volatile week ended on June 3rd, a tough fight was seen between the Bulls & Bears of Dalal Street. Sensex and Nifty ended with a gain of around 1.50 percent during the week. The key indices sustained losses for the two out of the five trading sessions.
Fundamental bytes:
India’s GDP grows 4.1% in Q4 and expands 8.7% in FY22
Exports up 15.46% in May, trade deficit widens to a record $23.3 billion
Oil set for sixth weekly gain as OPEC and supply boost disappoints
UltraTech announces ₹12,886 Cr Capex plan as competition grows in cement
Weekly Index Update
Nifty (up 1.42%) – Open 16527.90, High 16793.85, Low 16438.85, Close 16584.30
Bank Nifty (down 0.95%) – Open 35958.80, High 36083.70, Low 35175.10, Close 35275.05
Sensex (up 1.61%) – Open 55507.75, High 56432.65, Low 55091.43, Close 55769.23
India Vix – down 7.01% to end at 19.9850 levels on a weekly basis
FII’s: Net Sellers: (-6653.97 Crores)
DII’s: Net Buyers: (+6844.89 Crores)
Weekly Bullish Sectors – Realty (+4.90%), IT (+4.41%)
Weekly Bearish Sectors – Pharma (-1.98%), IT (-0.88%)
Top Gainers Stocks of the week – Coal India (+8.33%), M&M (+7.96%)
Top Losers Stocks of the week – Apollo Hosp (-7.07%), Shree Cement (-5.88)
Nifty Open Interest Put Call Ratio (PCR): 0.97
Maximum CE Open Interest Strike: 16800
Maximum PE Open Interest Strike: 16500
Bank Nifty Open Interest Put Call Ratio (PCR): 0.63
Maximum CE Open Interest Strike: 35500
Maximum PE Open Interest Strike: 35000
(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
Nifty
Nifty opened the previous week with nearly 200 points bump up to set the tone for the entire week. However market failed to keep up the same momentum in the following sessions.
On the weekly basis, we can see Nifty gained one and a half percent, but if we deep dive into the intra-week activity, we can clearly see that there is no conviction for the major part of the week (especially at higher levels).
Now from a technical perspective, Nifty has finally managed to surpass the sturdy wall of 16400, but it struggled as we approached the next barrier around 16700—16800.
Weekly Support and Resistance (Spot Levels)
The short-term support for the Nifty is 16400, a sustainable move below this then we will see more selling pressure towards the downside that can take breadth around 16100 levels. And if it further breaks that level then a major selling will come towards 15800 levels.
On the upside, the resistance is around 16700—16800. A breakout above that level will take the index towards 17000 and then to 17300 in the coming days.
Till the time we remain above the support level, we can continue with a buy-on decline strategy.
Nifty Futures strategy for Monday
Nifty Future has resistance at 16700 if it breaks and sustains above that level, then it will take it to 16790–16880 levels.
Support at 16550 breaks and sustain below that level will take it towards 16450–16350.
Bank Nifty
The Bank Nifty index formed a Bearish Engulfing candle on the last day of the week.
And formed a small-bodied Bullish candle on a weekly scale, indicates the absence of follow-up buying and sustained supply pressure at a higher level.
Now for the coming week ahead, the 200- period weekly moving average will act as a resistance for the near term.
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 towards 34200—33000.
On the upside, the resistance is at 35800—36000, sustainable breakout from that level will lead to a fresh upside move in the coming days.
Bank Nifty Futures Strategy for Monday
Bank Nifty Future has resistance at 35550 if breaks and sustain above that level then it will take it to 35730–36900.
Support at 35200 breaks and sustain below that level then it will take it to 35000—34800.
Top Stock Recommendation
BIOCON FUTURES
Biocon Futures stock has formed a bearish candle on a daily time frame & also ready to give a trend line breakdown, which indicates more weakness in an upcoming session. If breaks below the previous low then we can expect more downside move-in days to come.
Strategy – Traders can sell Biocon Futures below 320 for a target of 315. Resistance and stop-loss will be above 325 on a closing basis.
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