Weekly Update

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NIFTY50

At the beginning of the week, the Nifty started on a downward trend, breaking through its 200-DMA. For the first four trading sessions, the index hovered around its 200-DMA. However, on Friday, the index opened with a gap up and maintained a positive momentum throughout the session. Additionally, the volume was high, indicating a robust close for the index.

After Friday’s move, the market trend changed from a downtrend to neutral. A follow-through strong day is necessary, characterized by the Nifty gaining 1.5% and higher trading volumes compared to the previous day, to confirm an uptrend. On the other hand, if the recent low of 17255 is broken, the market trend will shift to a downtrend.

The Nifty index is expected to have a support level of 17300 in the upcoming week, with 18000 projected to act as a minor resistance.

Nifty50 Weekly Chart

BANK NIFTY

Bank Nifty ended the week 3.36% on the positive side. Bank Nifty is still trading within the budget day’s range. A breakout on either side can lead to good momentum. As we discussed earlier, ICICI Bank and HDFC Bank are two important stocks that can lead the rally on the positive side.

The Bank Nifty index is expected to have a support level of 39400 (which is also its 200 EMA) in the upcoming week, with 42000 projected to act as resistance.

Bank Nifty Weekly Chart

Top Performing Sector of the Week

• Nifty PSU Banks 9.75% Up

1. Bank of India 14.55% Up
2. Canara Bank 12.58% Up
3.  UCO Bank 12.20% Up

Worst Performing Sector of the Week

• Nifty IT 2.29% down

1. Mphasis 5.40% down
2. Infosys 4.6% down
3. Tech Mahindra 3.03% down

Key News:

• Jindal Steel & Power will invest Rs 10,000 crore in setting up a 3 million tonne per annum steel plant in Andhra Pradesh, creating 10,000 jobs.
• Adani Green Energy’s fourth wind-solar hybrid power plant at Jaisalmer, Rajasthan, is now fully operational and capitalized. The combined operational generation capacity is 700 MW, and it has a Power Purchase Agreement (PPA) at Rs 3.24/kWh for 25 years.
• Patel Engineering, along with JV partners, has received a letter of award for the Rihand Micro Irrigation Project from the Department of Water Resources, Madhya Pradesh. The company is an 80% partner in the JV, and its project share is Rs 5,120.47 million.
• WPIL received four Letters of Acceptance (LOA) from Madhya Pradesh Jal Nigam Maryadit for a total value of Rs 1,225 crores to be completed in 24 months.

 

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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