Week Ending 13th April 2023

Dear patrons. the markets over the last week have shown good up move. As predicted in our previous blog the Nifty managed to move up beyond our expectation and scaled newer highs on a daily basis. We had suggested about this up move when Nifty was around 16900 levels and we have been accurate in our prediction.

Global markets remained positive over the last week. With the onset of results season focus now shifts to stock specific movement rather than the indices. Most of the stalwarts of the Nifty will be out with yearly results over next 15 days and the results will set the tone for the markets.

Two IT giants have set the ball rolling with results last week. Both TCS & Infosys declared results last week and both were not up to the expectations of the street. Infosys in particular posted disappointing set of numbers. The markets may not like them and the stock may receive some pounding on the bourses. TCS was not a huge disappointment, however it wasn't a great set of numbers. We may witness overall IT sector being punished on account of poor performance by these stalwarts. The IT index closed below its important support level and is likely to move towards its recent lows.

Coming to Nifty, last week the index remained consistently in the green and managed to close up by over a percent and a half. What lies in store for the coming week? Let's try and analyze.

On the daily time frame Nifty has likely completed wave 4 up and is likely to commence 5th wave down. Technically if this wave pattern holds true Nifty is likely to move down towards recent low and go some more down.

Banknifty on the other hand has made smart gains and is in its upward wave pattern. Wave 3 of this upward pattern looks to have been completed and Banknifty is likely to commence its 4th corrective downward wave. 40800 should act as very strong support for Banknifty.

Traders are advised to be cautious in taking news driven trades in the result season. Any event regarding result may lead to volatile moves on stocks. Adhere to strict stop loss.

"How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case." — Robert G. Allen

P.S.: This communication is for educational purpose only and does not recommend buying or selling any stock or index. Trade at your own risk.