Weekly Update: 15th Jan 23

NIFTY50

The index has been hovering near its 100-DMA for the last three weeks with a negative bias. Nifty began the week on a higher note as the index reclaimed its 100-DMA. Over the next few sessions, the index traded near its 100-DMA and breached it. On Friday, the index found good buying support and reclaimed its 100-DMA. For the week, barring Nifty FMCG, all sectoral indices closed higher. Nifty IT and Metal were the top advancers.

On Thursday, when the market breached its correction low of 17774. However, there was a smart recovery and the index closed in the upper half of the day’s range. Hence, we marked Thursday’s action as day 1 of an attempted rally. Friday’s session will be considered day 2 of an attempted rally as Thursday’s low was not breached. On the daily charts, the Nifty is still in a downtrend. The next week is crucial as the Nifty may either breach the support level at 17750 or attempt to change its trend if it ends the week above 18150.

For the next week, support for the Nifty remains at 17750, and the immediate resistance level is at 18100 levels.

Nifty50 Weekly Chart

BANK NIFTY

Bank Nifty ended the week 35 points below from where it started. Bank Nifty is consolidating in the 2000 points range for the last 4 weeks. PSU Banks are holding strongly and can lead the next rally.

Bank Nifty is trading in the range of 41600 to 43600 where 41600 will act as major support and major resistance will be 43600. On the daily charts, the Bank Nifty is in a downtrend. If it crosses the resistance level of 43600 this week, we can expect another 3000 points rally in Bank Nifty over the next few weeks.

Bank Nifty Weekly Charts

Top Performing Sectors of the Week

The effect of the results of the leading IT companies is clearly seen this week in the Nifty IT index. With results that were better than analyst expectations and no signs of any slowdown, the worst for the IT sector seems to be over and it has emerged as one of the best-performing sectors this week.
⦁ Nifty IT 3.5% Up
– TCS 5.08% Up
– HCL Technologies 4.36% Up
– Persistent Systems 4% Up

(Nifty IT Weekly Chart)

⦁ Nifty Metals 2.58% Up
– Hindustan Copper 9.49% Up
– Hindalco Industries 5.59% Up
– JSW Steel 5.51% Up

Worst Performing Sectors of the Week

⦁ Nifty FMCG 1.03% down
– VBL 12.7% down
– Marico 3.22% down
– UBL 2.27% down

(Nifty FMCG Weekly Chart)

Important News

⦁ Anup Engineering’s Q3 FY23 revenue surged 141% y/y to Rs 114 crore. Net profit increased 130% y/y to Rs 13.8 crore.
⦁ Ganesh Housing Corp.’s Q3 FY23 revenue was down 12.1% y/y to Rs 66.8 crore. PAT was down 14.7% y/y to Rs 21.1 crore.
⦁ Rama Steel Tubes signed an MoU with the U.P government to set up a steel processing unit. The proposed investment will be Rs 600 crore, to be invested in a phased manner
⦁ Rail Vikas Nigam was awarded a letter of award (LoA) by Southern Railway for automatic block signalling in Chennai. The total cost of the project is Rs 38.97 crore and is to be executed in 15 months.

Key Results to watch out this week

16th January
⦁ Federal Bank
⦁ Bank of Maharashtra

17th January
⦁ ICICI Prudential Life Insurance
⦁ Bank of India
⦁ Metro Brands

18th January
⦁ IndusInd Bank
⦁ Persistent Systems
⦁ Central Bank of India

19th January
⦁ Hindustan Unilever
⦁ Asian Paints
⦁ Hindustan Zinc
⦁ Havells

20th January
⦁ Reliance Industries
⦁ JSW Steel
⦁ HDFC Life Insurance

21st January
⦁ ICICI Bank
⦁ Kotak Mahindra Bank
⦁ Ultratech Cement

ABOUT THE AUTHOR

Sagar Wadhwa

Sagar Wadhwa is a Senior Equity Research Analyst who is a key member of the research team at Univest. He has extensive knowledge and expertise in the stock market, financial analysis, and investing and uses this expertise to provide valuable insights to the research team.

Note – This channel is for educational and training purpose only & any stock mentioned here should not be taken as a tip/recommendation/advice

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