Week Ending 19th April 2024

Dear patrons, first of all let me apologize for not posting this blog for over a month. Lot has happened in the markets over this period amid global volatility and geopolitical tension. Not delving too much in the past let us focus on what happened in the last week and try to figure out what is in store for coming week.

Last week all the global markets were jittery on account of geopolitical tension prevailing in the middle east. World is staring at a potential world war if issues between the warring countries are not resolved quickly. In an already fragile atmosphere for global economies in the aftermath of the pandemic, the war could not have come up at a worse time. Global economies are already fighting very high inflation and a war at such a juncture threatens to put crude oil on the boil worsening inflationary pressure on central banks globally.

The US markets were extremely volatile last week due to war as well as diminishing chances of an early interest rate cut. Better than expected inflation data coupled with uncertainty on crude oil front led to selling pressure in the US markets, spreading the same sentiment across the globe.

Back home, our markets also felt the jitters of the ensuing war and lost heavily in first two sessions. After the holiday mid-week, however markets showed some stability and found support around 21800 and rebounded and managed to close above 22000.

As we can see in the above pic Nifty managed to hold on to very crucial support of 21800. Going ahead we believe 21800 will act as strong support for Nifty and we are unlikely to see lower levels. 21800-21600 should act as very strong buying zone for Nifty, whereas 22300 should act a resistance. Close above 22300 may propel Nifty towards 22600-22700 levels. Markets remain "Buy-On-Dips" till the time Nifty manages closing above 21600.

Coming to BankNifty, BankNifty managed to take support around 46600, which on all accounts should act as strong support. 47600-47800 range should act as resistance on BankNifty. Close above 47800 may lead BankNifty towards new All Time High levels.

Investors need to focus on quality and keep accumulating in every fall. Traders should be nimble footed and adhere to strict stop losses keeping in view the volatility in the markets owing to news flow. Markets may remain highly volatile on account of news emerging from the war zone as well as monthly expiry of the derivatives contracts.

“If I’d only followed CNBC’s advice, I’d have a million dollars today. Provided I’d started with a hundred million dollars.” ~ Jon Stewart

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.