Bulls are in charge now for three consecutive weeks. For the third week in a row, Indian stock market sentiment has been buoyed by falling Crude oil prices and lessening foreign investor selling. Positive domestic macroeconomic and business statistics from banks were also important elements in strengthening market sentiment.
The rally in Indian markets strengthened as oil prices recovered, cutting FII selling from the previous week.
However, this surge may fade as commodity price corrections and tightening monetary policy are bad for the global economy, restricting profits growth and value expansion.
In the short term, the Q1 earnings season will be the primary focus of the market.
Results for the coming week ahead
The coming week would also be important as investors and traders will have an eye on the quarterly earnings of the below-mentioned companies.
Larsen & Toubro Infotech
Tata Steel Long Products
Jindal Steel & Power.
Weekly Stock Market Summary
Nifty (up 2.97%) – Open 15710.50, High 16275.50, Low 15661.80, Close 16220.60
Bank Nifty (up 4.72%) – Open 33558.85, High 35262.10, Low 33515.60, Close 33124.05
Sensex (up 2.97%) – Open 52851.67, High 54627.14, Low 52674.81, Close 54481.84
India VIX – down -13.44% to end at 18.39 levels on a weekly basis
Weekly FII DII Activity
FII’s: Net Sellers: (-2218.38 Crores) during the week
DII’s: Net Buyers: (+3910.33 Crores) during the week
Weekly Bullish Sectors – PSU Bank (+6.6%), FMCG (+5.7%)
Weekly Bearish Sectors – None of the sector ends in red.
Top Gainers Stocks of the week – Titan Co. (+10.18%), Hindustan Unilever (+9.40%)
Top Losers Stocks of the week – ONGC (-9.55%), Indian Oil Corp. (-2.48%)
Nifty Open Interest Put Call Ratio (PCR): 1.07
Maximum CE Open Interest Strike: 16200
Maximum PE Open Interest Strike: 16000
Bank Nifty Open Interest Put Call Ratio (PCR): 1.06
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)
Weekly & Intraday (Monday) View of Nifty and Bank Nifty
During the week, the Nifty made a strong comeback. On the way up, it overcame many short-term obstacles, including the psychologically significant 16,000 milestones. It filled in the gap left by the June downturn.
The index has now reached a crossroads. It has hit the upper Bollinger Band of the day as well as the top of a rising channel.
The index has formed a bullish candle on the weekly time frame, which too points to the previous week’s upside rally.
In terms of Fibonacci retracement, it has completed just 61.8 percent of the June plunge. As a result, durability at this level will be critical in determining future extension in the upward movement.
Weekly Support and Resistance (Spot Levels)
If the Nifty crosses the July 8 high of 16,275, it might quickly move towards 16,500. Failure to remain above 16,200 on the other hand, will enable a drop to 16,050-16,000. Below 15900 we may see more panic in Nifty 50.
Nifty Futures Strategy for Monday
Nifty Future has resistance at 16250 if breaks and sustains above that level, then it will take it to 16320–16400 levels.
Support at 16150 breaks and sustain below that level will take it towards 16050–15900 levels.
Positive momentum continued in the Bank Nifty index as investors’ buying was seen. PSU Banks witnessed a strong rally throughout the week.
Technically, on weekly charts, the Bank Nifty has formed a long bullish candle and has also surpassed the short-term resistance of 35000.
In the short term now, 35000 and the 50-day SMA (simple moving average) would be the key support levels to watch out for.
The short-term texture of the index is positive but slightly overbought.
Weekly Support and Resistance (Spot Levels)
The short-term immediate support for the Bank Nifty is 34900. If it breaks that level, then it could take the markets down to 34500—34000.
On the upside, the resistance is around 35500, sustainable breakout from that level will lead to further upside in the coming days.
Bank Nifty Futures Strategy for Monday
Bank Nifty Futures has resistance at 35300 if breaks and sustain above that level then it will take it to 35500–35700.
Support at 35000 breaks and sustain below that level then it will take it to 34800—34600.
Top Stock Pick Of The Week
The stock is trading near its crucial resistance level and will likely break out in the coming session.
Strategy: Traders are advised to buy above 1680 for the upside target of 1720 and then to 1750 in the coming days.
Support and stop loss will be below 1650 on a closing basis.
Trade safely with levels. More will update during the week. To get daily levels of Nifty and Bank Nifty and Indian stock market updates, visit our blog every morning!
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