Weekly Update

NIFTY:

The market saw a sharp selloff but rebounded from lower channel support, buoyed by oversold PCR data hinting at a potential pullback. Further short covering rally is expected if the index maintains above 21900.  Index has formed a weak candle for the week, down by -1.87%. Potential support for the upcoming week is around 21,900, and a breach below this level could lead to further weakness. Conversely, resistance is foreseen around 22,200 and next probable resistance stands at 22,500.

Despite expectations of a clear NDA victory, low voter turnout has cast uncertainty on the incumbent government’s seat count, causing volatility to spike, with India VIX up by over 2% to 18.5 which is likely to ease out post election. 

Noteworthy call open interest at 23,000 indicates a key resistance level, while significant put interest at 22,000 underscores a crucial support level. 

Nifty50 Weekly Chart

 

BANK NIFTY:

The Bank Nifty exhibited a bearish trend with 8 consecutive red candles, culminating in a bearish engulfing candle for the week, marking a decline of -3.07%. Currently trading at the channel support, there’s potential for a rebound if the index maintains above the 47300 level.

Expected support for the upcoming week is around 47000, and a breach below this level could lead to further weakness. Conversely, resistance is foreseen around 48500. Given the PCR data and support level, there’s a possibility of a short covering rally in the coming week.

Analysis of options data indicates significant call open interest at 48000, indicating a crucial resistance level, while notable put interest is observed at 47000, suggesting a pivotal support level.

Bank Nifty Weekly Chart

 

Top Performing Sector of the Week

Nifty FMCG Index 1.85%

-Marico 13.6%

-Britannia 6.80%

-Hindustan Unilever 6.56%

Nifty FMCG Weekly chart

 

Worst Performing Sector of the Week

Nifty PSU Nifty -6%

-Canara Bank -12.39%

-PNB -8.76%

-Bank of Baroda -7.37%

Nifty PSU Bank Weekly chart

 

Key News

• Thermax March 2024 (Quaterly) Income at Rs 2,764 crore vs Rs 2,311 crore YoY. PAT at Rs 188 crore vs Rs 156 crore YoY. 
• Ami Organics March 2024 (Quaterly) Income at Rs 225 crore vs Rs186 crore YoY. PAT at Rs 26 crore vs Rs 27 crore YoY. 
• Eicher Motors March 2024 (Quaterly) Income at Rs 4,256 crore vs Rs 3,804 crore YoY. PAT at Rs 1070, crore vs Rs 906 crore YoY. 
• Finolex Industries March 2024 (Quaterly) Income at Rs 1,235 crore vs Rs 1,141 crore YoY. PAT at Rs 165, crore vs Rs 166 crore YoY.