Despite the ongoing legal battle between US-based Hindenburg and Adani Group, Indian markets ended on a positive note on Friday, with the Nifty 50 up 243.65 points or 1.38% and closing at 909.64 points or 1.52% at 17,854.05. Sensex closed at 60,841.88. Most sectoral indices ended the day in the green, despite the fact that Nifty Mid Cap and Nifty Small Cap underperformed the major indices by 0.18% and 0.35%, respectively. Top gainer was Nifty PSU Bank, up 3.07%, followed by Nifty Fin Services and Nifty Bank, both up 2.36% and 2.04%. However, major underperformers were Nifty Energy down 1.03% and Nifty Pharma down 1%.
The Adani controversy created significant volatility in the week, but the Nifty index climbed 0.53% and the Sensex gained nearly 1.8%, while the BSE Midcap index declined 0.5% and the BSE Smallcap index gained 0.5%. At the conclusion of its two-day policy meeting last week, the US central bank announced raising the benchmark lending rate by a quarter point, bringing it to a target range of 4.50-4.75 per cent in the last week, and during the period In the same time period, FPIs were net sellers while DIIs were net buyers in the last five trading sessions. Analysts expect Dalal Street, however, to remain focused on macro movements influenced by global cues, budget release and RBI’s rate decision.
Nifty outlook for this week
Rajesh Palvia, VP – Technical & Derivatives Research, Axis Securities said on the weekly chart, the index has formed a “piercing bullish” candlestick pattern, indicating a possible short-term reversal on the index. The chart pattern suggests that there will be buying if Nifty crosses and sustains above 18000 levels, leading the index towards 18300-18500 levels.
However, if the index breaks below 17700 levels, it will witness selling, taking the index towards 17500-17300. For the week, we expect Nifty to trade in the range of 18500-17300 with a mixed bias. The weekly strength indicator RSI is slightly below its reference line, while the momentum oscillator Stochastic has turned positive, indicating a positive bias.
Bank Nifty Outlook for this week
Rajesh Palvia said on the weekly chart, the index has formed a piercing bullish candlestick pattern which indicates a possible short-term reversal on the index. The chart pattern suggests that there will be buying if Bank Nifty crosses 41700 level and holds above, which will take the index towards 42000-42200 levels.
However, if the index breaks below 41300 level, there will be selling which will take the index towards 41000-40800. For the week, we expect Bank Nifty to trade in the range of 42200-40800 with a mixed bias. The weekly strength indicator RSI is slightly below its reference line, while the momentum oscillator Stochastic has turned positive, indicating a positive bias.
Rajesh Palvia stock recommendations for the coming week
1. Eicher Motors: Buy 3320 stop loss 3250, target price 3450
2. Canfinhome: Buy on 574 stop loss 550, target price 625
3. Bharti Airtel: Buy 790 stop loss 760, target price 840
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
Know your inner investor
Do you have guts of steel or are you a victim of insomnia regarding your investments? Let’s define your investment approach.
catch all business News, market news, today’s fresh news events and Breaking News Update on Live Mint. download mint news app To get daily market updates.