Dear patrons, as predicted in the previous blog the benchmark indices did a "U" turn and lost more than 200 points for a weekly closing around 17600. We had mentioned in the previous blog that the Nifty is likely to slide towards recent lows. The target remains far from achieved though. You may read about our analysis here Weekly Market Update: Week Ending 13th April 2023 (amitbajare.blogspot.com)
On the global front, markets around the globe remained sideways. Crude oil moved down on economic growth worries. The downward movement in crude is good news for India, as a major chunk of India's import bill is on account of oil, the flip side is, falling crude oil is an indication of falling growth around the world, which in turn may affect India's growth. Although India remains fairly robust domestic consumption economy, recession around the western world may hamper our growth trajectory for some time.
Our markets for the time being should see stock specific action as we are in the midst of results season. So far the result season has been a mixed bag. IT giants have disappointed the investors and bore their brunt, losing heavily over the last week. Two major stocks on the indices announced results Saturday, namely, Reliance and ICICIBANK. It remains to be seen whether the markets like the numbers posted by these companies or not.
Benchmark index Nifty remained in consolidation mode after losing heavily at the start of the week. Coming week being expiry week for the derivatives, is likely to see volatile action and swings on both sides may be in the offing.
Let's try to analyze move on the indices and see as to what lies in store for the coming week.
As we can see in the above image Nifty dropped heavily at the start of the week and then remained in consolidation mode for the remaining week. The Nifty looks ready for a fall towards 17500 and below in the coming week. Nifty closed just below its support level on Friday and next support is seen around 17500, failing to protect this level it may swiftly slide towards 17000. Nifty has again moved to "Sell on Rise" mode.
Coming to BankNifty, we did mention that it looks stronger among the 2 indices. It managed to consistently close above the 42000 mark over the entire week. Immediate support for BankNifty seems to be around 41900 failing which 40800 should act as a major support.
Markets may see swing on either direction. Traders should be prepared to ride this roller coaster. Following levels should prove to be rewarding. Market should provide ample opportunity if you wait patiently for levels and adhere to strict trading framework. Do follow stop loss in any event.
"We don't have to be smarter than the rest, we have to be more disciplined than the rest" ~ Warren Buffet
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.
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