Week Ending 9th February 2024

Dear patrons, markets have been quite volatile over last week. With important events like the Budget and the Monetary policy behind us, we should see a definitive direction setting-in, in the markets. 

For the straight sixth time RBI maintained status quo on interest rates, leading to heavy profit booking in financial stocks barring SBI. Almost all central banks around the world have been maintaining interest rates constant over last few months. Unrest in the middle east may push Crude Oil rates northwards putting pressure on inflation leading central banks to hold interest rates.

Globally, the biggest markets i.e. the US markets have been on a roll and inching higher, creating All-Time Highs. The S&P Index crossed 5000 mark for the first time in history last week, following Federal Reserve commentary on inflation and interest rates.

Back home, result season has been pretty impressive barring a few exceptions and we believe that the companies about to post results should show decent performance. Indian economy has remained resilient during geopolitical as well as financial turmoil around the globe. This behavior of the economy augurs well for investors in the market. Indian economy is likely to scale higher at a great pace once things around the world normalize.

Let's see what happened last week and try to figure out what lies in store for the next week on charts.

We can see Nifty reacting to RBI policy on the penultimate trading session for the week with a sharp fall towards 21600 and recover some lost ground On Friday. 21500-21600 remained strong support range for Nifty as mentioned in the last blog (You may read it hear Weekly Market Update: Week Ending 2nd February 2024 (amitbajare.blogspot.com)). For the coming week support for Nifty shifts to 21700-21600 range. 

BankNifty remained volatile over the week with big swings in both directions during day. It failed to cross the 46200-barrier mentioned in the last blog. Strong support for BankNifty is placed around 44900. We are likely to see surge in BankNifty in coming week on the up side and higher levels should be visible pretty soon. Resistance lies around 46000-46100 range crossing which, is crucial for BankNifty to move further upwards.

 "You cannot make profits in the stock market unless you have the ability to bear losses." ~ Rakesh Jhunjhunwala

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.