Dear patrons, it has been an eventful last week witnessing yet another Life-Time High on the benchmark indices namely Nifty and Sensex. Markets were volatile though the week on account of February series expiry and witnessed a brutal sell off a day before expiry. Nifty plunged below crucial 21900 level on intraday basis but managed to close above it and continued its upward move towards a new high on commencement of new series on Friday.
On economy front, the Indian economy grew by a whopping 8.4% during Q3FY24. Barring pharma all sectors grew handsomely, some even clocking double digit growth. India is outpacing its contemporaries by some distance where in the second-best growth is registered around 5.5%. The overall estimate for India's growth has also been revised upwards from 7.3% to 7.6%. The Current Account Deficit is also contained within expected range.
Globally all major markets are in good shape with the US markets making new highs. This week it was the turn of Nasdaq to make a new lifetime high, following the S&P. Majority of central banks are likely to ease stand on monetary policy sooner than later which should lead to higher liquidity and more growth. We are most certainly at the peak of interest cycle and should soon witness softening of interest rates worldwide.
Lets now try to figure out what lies in store for us for the coming week.
We can see Nifty falling sharply on Wednesday and then move up even more sharply to regain lost ground and make a new ATH. We had mentioned about 21900 to act as strong support in the last blog. Nifty for a brief period went below 21900 but managed hold head above this level and zoomed beyond 22400 within a span of 3 days. You may read about it here Weekly Market Update: Week Ending 23rd February 2024 (amitbajare.blogspot.com))
Nifty may pause for some time and a correction is not ruled out. 22400-22500 range should act as resistance, while 22200-22100 range should act as support. Major support lies around 21800 and may prove to be unbreachable for Nifty
BankNifty has outperformed Nifty last week. As mentioned in the previous blog 47500 still remains elusive. Resistance for BankNifty has shifts upward this week towards 47800-47900 range and support moves to 46700-46600 levels.
In the mean accumulate good quality stocks in every dip.
Stay Invested!!!
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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