Weekly Update – 30 August 2024

NIFTY50

As anticipated the Nifty continued its uptrend and made a new all time high on Friday, closing at 25235, gaining 1.66% over the previous week. The week began with the Nifty opening at 24906 and each day of the week saw a positive or flat closing making for the net gain this week.

In the coming week, the Nifty is expected to continue its upward momentum, and, in that case, it could create a new all-time high during the next week. However, after such a strong up move in the previous weeks, there is a chance that there might be a correction during this week, and it is likely to catch traders unaware. A correction could see the Nifty test its support levels at 24850.

 

BANK NIFTY

The Banknifty also displayed a positive movement this week but not as strong as the Nifty. The Nifty gained 0.82% over the previous week, closing the week at 51351. The movement during the week was not very decisive with Banknifty not giving any clear direction. It was only Friday’s movement which gave confirmation to the upward momentum remaining intact.

In the coming week, if the upward movement is sustained, then the Banknifty index can test levels of 52000, either mid-week or towards the end of the week. In the event of any weakness, a strong support level exists at 50700, which is unlikely to be broken this week.

 

Top Performing Sector of the Week

The Nifty IT index was the top performing sector this week

Major gainers from this sector includes

LTIMindtree: up by 9.1%

Persistent Systems: up by 5.9%

HCL Technologies: up by 5.5%

Coforge: up by 5.3%

Worst Performing Sector of the Week

The Nifty FMCG index was one of the worst performing sectors this week.

Major losers from this sector include:

Varun Beverages: down by 5.1%

Marico: down by 4.6%

PGHH: down by 3.5%

HUL: down by 1.3%

Important News

• Lemon Tree signs an agreement for a new hotel in Ayodhya with a range of amenities, opening FY26
• Piramal Pharma to invest Rs 1,306.6 crore in its subsidiary, PDH NV, by converting a loan
• SJVN reportedly signs a MoA with Arunachal Pradesh for five hydroelectric projects
• Great Eastern Shipping sells its 2011-built Supramax dry bulk carrier Jag Rani of about 56,820 DWT
• Bajaj Housing Finance IPO to open between September 9-11; to raise Rs 6,560 crore
• Gujarat Gas board approves merger, demerger plan involving GSPC and GSPL