Weekly Update – 20 October 2023

NIFTY50

This week, the Nifty 50 closed at 19,542, which is 1.06% lower than the previous week. The Nifty started the week on a strong note, rising on Monday and Tuesday, indicating the continuation of an upward trend. However, it began to decline from Wednesday onwards, ending the week by erasing all the gains made earlier in the week.

This week is crucial as it will determine the Nifty’s direction. For the Nifty to show strength on the bullish side, it needs to cover the previous week’s decline and close above 19,850. If the Nifty continues its downward trend, it has strong support in the 19,200-19,250 range. However, if these levels are breached during the week, the Nifty is likely to test its next support level at 18,800 in the coming weeks, indicating further weakness.

Nifty50 Weekly Chart

BANK NIFTY

The Banknifty index lost 1.28% this week, closing at 43,723. This marks the fifth consecutive week of consistent decline for the Banknifty. It is now very close to its support level of 43,500.

This week will provide a clearer picture of whether the Banknifty will continue its downward streak or stage a rebound. Given its proximity to the support level, there is a high possibility of it breaking this support level. In such a scenario, there is a very high likelihood of it moving further down to test its next support level at 42,500.

If it does not break its support level at the start of the week, we could witness a rebound, and the Banknifty index is likely to recover a significant portion of the losses from the previous week, potentially closing above 44,400, indicating a strong rebound.

Banknifty Weekly Chart

Top Performing Sector (Index) of the Week

This week’s top performing sector was the Nifty Microcap 250 index
Major gainer from this index include:

• Ion Exchange – up by 24%
• Newgen Software Technologies – up by 23.8%
• Styrenix Performance Materials – up by 14.7%
• Jai Corp – up by 14.7%

Nifty Microcap 250 Index Weekly Chart

Worst Performing Sector of the Week

The Real Estate sector was one of the worst performing sectors this week, with many prominent real estate companies falling this week.

Major losers from this sector include:

• Phoenix Mills – down by 7.9%
• DLF – down by 2.9%
• Oberoi Realty – down by 2.6%

Nifty Realty Weekly Chart

Important News

• RBI approves Ashok Vaswani as Kotak Mahindra Bank’s CEO after Uday Kotak’s departure.
• ICICI Bank reports 26.8% YoY rise in consolidated revenues and YoY net profit growth of 36.76% in Q2FY24.
• Yes Bank reports 24.6% YoY rise in consolidated revenues and YoY net profit growth of 42.5% in Q2FY24.
• Adani Cement raises $3.5 bn to refinance debt.
• Paytm Q2 loss nearly halves to ₹292 crore after jump in subscription revenue and loan disbursements
• Tata Steel breaks ground for ₹2,600 crore green steel plant in Ludhiana

 

 

ABOUT THE AUTHOR

Ketan Sonalkar (SEBI Rgn No INA000011255 )

Ketan Sonalkar is a certified SEBI registered investment advisor and head of research at Univest. He is one of the finest financial trainers, with a track record of having trained more than 2000 people in offline and online models. He serves as a consultant advisor to leading fintech and financial data firms. He has over 15 years of working experience in the finance field. He runs Advisory Services for Direct Equities and Personal Finance Transformation.

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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