(7th August- 11th August)
Despite muted global cues, markets in India opened in green on Monday, August 7. The NSE Nifty 50 rose 53.90 points or 0.28% to 19,570.90 ad BSE Sensex gained 151.68 points or 0.23% to 65,872.93 in early market hours.
Asian markets opened the week flat – China’s Shanghai Composite Index tumbled 0.65%, Japan’s Nikkei 225 dipped 0.13%, Asia Dow fell 0.15% while South Korea’s KOSPI rose 0.05% and Hong Kong’s Hang Seng was up 0.05%.
In sectoral indices, Bank Nifty rose 17.05 points or 0.04% to 44,896.55, Nifty Auto gained 0.36%, Nifty IT jumped 0.45% while Nifty FMCG fell 0.35% and Nifty PSU Bank tumbled 0.37%. The top gainers on Nifty 50 were Mahindra & Mahindra, Hindalco, Grasim, Coal India and NTPC while the losers were Britannia, Cipla, ITC, Adani Enterprises and Asian Paints.
NIFTY OUTLOOK
• The Nifty index has formed a strong negative candle on the weekly scale. This negative candle has disrupted the pattern of higher highs and lower lows that had been forming for the past eighteen weeks. This change in pattern could indicate a potential reversal or shift in market sentiment.
• The Nifty is currently trading near the lower band of a rising channel at 19,300 – 19,500 zone. This level also corresponds to a 23.6% Fibonacci retracement of a previous price swing from 16,828 to 19,991. This suggests that 19,300 is a significant support level, and the market’s behaviour around this level could be crucial for determining its future direction.
• The Nifty has closed below an important swing low of 19,560 on a daily basis. This breach of a key support level could be a bearish signal, indicating potential further downward movement.
• If the Nifty holds above 19,300, it could lead to a pullback with potential targets at 19,770 and 19,888. Conversely, If Nifty falls below 19,300, it might decline further towards 19,000 and 18,800. This level is representing both a 38.20% Fibonacci retracement and a previous breakout level.
• A convincing move above 19,770 could fuel a rebound, while failure to breach this level could result in continued consolidation.
• Nifty: Intraday resistance is placed at 19,615 followed by 19,680 levels, while downside support is placed at 19,450 followed by 19,385
BANK NIFTY OUTLOOK
After a sharp correction, the Bank Nifty took support near the 50-day SMA and bounced back sharply. For traders, the 50-day SMA or 44,500 would be the sacrosanct support level. Above this, it could rally till 20-day SMA or 45,400-45,500.
News that could impact the stock market
- Investors are awaiting the upcoming MPC meeting, where the RBI is expected to maintain its policy rates at 6.5 per cent
- Total Reserves down $3.16 bn at $603.87 bn while Foreign Currency Assets down $2.41 bn at $535.33 bn in week ended July 28
- Govt considers import duty cut as wheat prices firm up
- Tata Steel to bid for iron ore mines ahead of expiry of leases in 2030
- Jio to get $2.2 bln funding from EKN for 5G
- The Blackstone Group has acquired over 71 lakh shares of Indiabulls Housing Finance. MFs and FIIs, too, are continuously acquiring
- Reliance AGM Special Business: Resolution to alter MoA objects to allow business in all areas of integrated renewable energy power projects
- Stocks Ban In F&O: GNFC, Hindcopper, IndiabullsHsg, PEL.
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