Weekly Update

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NIFTY50

The Nifty concluded the week with a 1.88% gain. Notably, it surpassed its prior peak of 19,992 and maintained this level, highlighting its resilience. On Tuesday, we observed profit-taking activities within the midcap and smallcap indices. It is anticipated that reaching and surpassing the recent highs achieved by certain stocks in the midcap and smallcap sectors may pose a challenge, suggesting the likelihood of consolidation in these segments.

Currently, the market is in a confirmed uptrend. Barring Nifty Media (-3.63%) and Realty (-0.75%), all sectoral indices closed higher for the week. Nifty PSU Bank (+7.22%) was the top gainer, followed by Nifty IT (+2.9%).

The immediate support level stands at 19,900, with 19,250 serving as a secondary support. Given that the market is currently at an all-time high, there are no significant resistance levels in sight.

Nifty50 Weekly Chart

BANK NIFTY

The week concluded with Bank Nifty posting a 2.38% increase. While Nifty Bank is currently trading close to its resistance threshold, it’s noteworthy that PSU Banks are displaying remarkable resilience, and this strength is anticipated to persist. We foresee Bank Nifty entering a consolidation phase at these levels, with the potential for a breakout in the near future.

For the upcoming week, the Bank Nifty index is expected to have a support level of 44,800, and on the flip side, 46,400 is likely to act as an immediate resistance.

Bank Nifty Weekly Chart

Top Performing Sector of the Week

Nifty PSU BANK 7.22% Up

–    Indian Overseas Bank 20.43% Up

–    Central Bank 19.85% Up

–    Uco Bank 15.10% Up

Worst Performing Sector of the Week

Nifty Media 0.52% Down

– Network18 8.32% Down

– TV18 Broadcast 6.77% Down

– DishTV 6% Down

Key News

• Zydus Lifesciences received final approval from the U.S. FDA for the Norelgestromin and Ethinyl Estradiol Transdermal System, which contains combination hormone medication and is used to prevent pregnancy.
• G M M Pfaudler’s subsidiary GMM Pfaudler US Inc, entered into an agreement to acquire a 100% stake in Professional Mixing Equipment
• Inc. (MixPro) for $7M. The transaction will be funded through internal accruals and is expected to close by October 2023.
• Patel Engineering (Nse) and its JV partner have been declared the lowest bidder for an irrigation project worth Rs 249.9 crore from
• Maharashtra Krishna Valley Development Corporation.
• Strides Pharma Science’s subsidiary, Strides Pharma Global Pte Limited, Singapore, received tentative approval from the U.S. FDA for Dolutegravir.
• Shakti Pumps India received a letter of award for a work order worth Rs 293 crore under the PM- KUSUM III scheme under component-B for 10,000 pumps from the Department of Agriculture, Uttar Pradesh.

 

 

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 purposes only & any stock mentioned here should not be taken as a tip/recommendation/advice

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