Weekly Update

NIFTY:

The NIFTY index commenced the week on a subdued note, witnessing further weakness mid-week before stabilizing above the crucial 21,900 level in the latter part of the trading sessions, ultimately closing above 22,000. 

Despite ending the week down by -2.19%, it found support from the 10 EMA on the weekly chart. Notably, a bearish engulfing candle emerged, engulfing the previous three weeks’ bodies, signaling potential downward pressure. A decisive drop below 21,900, particularly at the 10 EMA, could precipitate a notable downturn with next crucial support at 21500, while sustained trading above 22,200 may pave the way for a retest of levels around 22,300-22,350. 

The recent SEBI mandate for mutual funds to disclose stress testing measures by March 15 aims to address liquidity challenges in volatile markets. Amidst heavy selling in Midcap and Smallcap stocks till mid week, followed by partial recovery in the last two trading sessions. 

Options data indicate significant Call open interest at 22,500, with notable Put interest at 22,000, highlighting pivotal resistance and support levels, respectively. Investors should remain vigilant amid evolving market dynamics and regulatory changes.

Nifty50 Weekly Chart

 

BANK NIFTY:

Bank Nifty sustained a downtrend throughout the week, registering a weekly loss of -2.6%. This decline followed four weeks of consecutive positive weekly closes, indicating a shift in sentiment towards profit booking. 

Notable resistance levels are observed at 47,200 and 47,500, while a potential support level is identified at 46,000. 

Across sectors, profit booking was evident at higher levels, with the Realty and Media indices experiencing the most significant losses. This suggests a broader trend of cautious trading and potential sectoral rotation among investors.

Bank Nifty Weekly Chart

 

Top Performing Sector of the Week

Nifty IT 1.08%

-TCS 2.7%

-LTTS 2.23%

-Infosys 1.09%

Nifty IT chart

 

Worst Performing Sector of the Week

Nifty Realty -9.42%

-Sobha -18%

-Macrotech Developers -14.39%

– DLF 10.5%

Nifty Realty Weekly chart

 

Key News

• Navin Fluorine International approved an additional investment of Rs 250 crores in Navin Fluorine Advanced Sciences Limited. 
• KPI Green Energy bags 50 MW Wind-Solar Hybrid Power Project under tender issued by Gujarat Urja Vikas Nigam Ltd. 
• ICICI Prudential Life Insurance Company likely has picked up 2,52,000 sq ft of office space in IT park Mindspace in Mumbai’s Malad west suburb, for what will be its largest back-office facility. 
• ITC likely is set to open its first hotel in northeast India in early 2025. The company has signed a management contract with Denzong Regency- a 5 star mountain retreat and casino, which is located in Gangtok, Sikkim.