Weekly Update

NIFTY50

Nifty ended the week at record High (19565) and gained 1.20% this week. India’s June WPI inflation came in at -4.12% versus -3.48% a month ago. Wholesale inflation remained in negative territory for the third straight month. Nifty PSU Bank was the top decliner and Nifty IT and Metal were the top gainers this week.

Currently the Market is in a confirmed Uptrend. MidCaps and SmallCaps are trading near their new highs and broader market strength has improved. The current distribution day count is 1 which was on Wednesday.

The Nifty index is expected to have a support level of 18900 in the upcoming week, with 19800 projected to act as resistance.

Nifty50 Weekly Chart

BANK NIFTY

The Bank Nifty ended the week with a marginal decline of 0.28%. Notably, PSU Banks were the primary contributors to this negative performance. However, we hold the view that PSU Banks have the potential to reverse this trend and emerge as the leading performers of the upcoming week. This optimism stems from their recent breakout on the weekly time frame, followed by a successful retest of the breakout level. Consequently, we anticipate a fresh rally to commence from this point onward.

For the upcoming week, the Bank Nifty index is expected to have a support  level of 43700 and on the flip side, 46000 to act as a round level resistance.

Bank Nifty Weekly Chart

Top Performing Sector of the Week

• Nifty IT 4.7% Up

          –    Mphasis 10.24% Up

          –    Infosys 7.2 % Up

          –    Tech Mahindra 6.28% Up

(Nifty IT Weekly Chart)

Worst Performing Sector of the Week

• Nifty PSU Banks 1.54% Down

           –    Bank of Baroda 5.07% Down

           –    UCO Bank 3.47% % Down

           –    Maharashtra Bank 2.66% Down

(Nifty PSU Banks Weekly Chart)

Key News

• Unichem Laboratories’s Q1 FY24 revenue increased 36.7% y/y to Rs 423.2 crore. It posted a net loss of Rs 66.83 lakh versus Rs 23.4 crore a year ago.
• Tata Metaliks (Nse)’s Q1 FY24 revenue from operations fell 2.4% y/y to Rs 650.5 crore. Profit surged 273% y/y to Rs 4.55 crore. EBITDA margin expanded 178bps to 5.4%.
• India’s June WPI inflation came in at -4.12% versus -3.48% a month ago. Wholesale inflation remained in negative territory for the third straight month.
• Jbm Auto won orders to supply approximately 5,000 electric buses to various state transport undertakings in Gujarat, Haryana, Delhi, Telangana, and Odisha among others, and multiple Fortune 500 companies coupled with leading corporates in the country.
• India’s merchandise trade deficit narrowed to $20.13B in June from $22.1B in May.