Weekly Update

NIFTY

The Nifty 50 has exhibited signs of weakness ahead of the Union Budget, forming a bearish shooting star on the weekly chart and a bearish engulfing candle on the daily chart. These candlestick patterns, particularly at lifetime highs, carry more significance than at normal swing highs. Additionally, the index has surged over ten percent in a brief period without any substantial consolidation. The upcoming budget could serve as a catalyst for either sustaining the current trend or initiating a reversal. It is prudent to avoid aggressive position sizing due to the inherent event risk.

The next significant resistance level for the index is at 25,000, with immediate support at 24,000 and 23,800. Options data indicates substantial call open interest at 25,000, denoting strong resistance, while significant put interest at 24,000 underscores crucial support.

Nifty50 Weekly Chart

 

BANK NIFTY:

Bank Nifty ended the week nearly unchanged, dipping by -0.03%, but managed to stay above the 52,000 mark. The index has consistently remained above the 20-day EMA, which has provided robust support. A close below this level could indicate impending short-term weakness.

A close below 52,000 may signal a bearish trend in the short term. Key support is at 51,700, with immediate resistance at 53,000. Options data reveals significant call open interest at 53,000, designating it as a major resistance point, while substantial put interest at 52,000 underscores critical support.

Bank Nifty Weekly Chart

 

Top Performing Sector of the Week

Nifty IT Index 2.31%

• Mphasis 6.80%
• Infosys 4.75%
• LTI Mindtree 3.4%

Nifty IT Weekly chart

 

Worst Performing Sector of the Week

Nifty Metal Index (-4.65%)

• NMDC -7.11%
• Hind Copper -6.80%
• Jindal Steel -6.66%

Nifty Metal Weekly chart

 

Weekly Performance Update

Here’s our performance update for this week!

 

Key News

• Route Mobile June 2024 (Quarterly) Income at Rs 1,103 crore vs Rs 967 crore YOY. PAT at Rs 81 crore vs Rs 92 crore YoY.
• Reliance Industries June 2024 (Quarterly) Income at Rs 231,784 crore vs Rs 207,559 crore YOY. PAT at Rs 17,445 crore vs Rs 18,258 crore YoY
• JSW Energy June 2024 (Quarterly) Income at Rs 2,879 crore vs Rs 2,928 crore YoY. PAT at Rs 534 crore vs Rs 290 crore YoY
• RPG Life Sciences June 2024 (Quarterly) Income at Rs 165 crore vs Rs 148 crore YoY. PAT at Rs 27 crore vs Rs 22 crore YoY
• Oberoi Realty June 2024 (Quarterly) Income at Rs 1,405 crore vs Rs 910 crore YOY. PAT at Rs 585 crore vs Rs 322 crore YoY
• Nippon Life India Asset Management June 2024 (Quarterly) Income at Rs 505 crore vs Rs 354 crore YoY. PAT at Rs 332 crore vs Rs 236 crore YoY