Bank Nifty Technical Analysis | Nifty Trends for (3-7 May)
Nifty and Bank Nifty technical analysis and key factors to impact the market for the week (3-7 May)
Nifty and Bank Nifty Technical Analysis (3-7 May): Indian stock market gained almost 2 percent during the week ended 30 April. Markets bounced back after a fall of three consecutive weeks. This is due to the strong quarterly results and support from the global markets. The surge in coronavirus infections was overlooked by the traders, as localized lockdown/restrictions were imposed by the states instead of a full lockdown. The localized restrictions to curb the covid-19 virus will have a lesser negative impact on the economy compared to the full lockdown done in 2020.
The key factors that may impact the Indian stock markets for the next week are
Domestic events for next week
The key domestic factors that are likely to impact the stock market next week are as follows.
Auto sales number
Auto sectors will be the focus on Monday as various automakers will start positing their April sales figure from 1st May onwards. The auto sales will remain muted in the month of April due to the surge in coronavirus cases in the country. Though the number is not comparable with the same period last year due to zero sales in April 2020, on an MoM basis, the sales number will be affected in April.
4th Quarterly result
Last week, Indian markets reacted positively due to the strong March-end quarterly results reported by the corporates. In the coming week, the market will first react to the Reliance 4th quarter result. Reliance had reported a 129 percent year-on-year rise in its consolidated net profit for the March-end quarter to Rs 14995 crore. There are seven Nifty50 companies that will announce their March-end quarterly results in the coming week. The schedule is given below.
| Q4 Results dates for Nifty50 Stocks | |
| 3 rd May | Kotak Bank |
| 3 rd May | SBI Life |
| 4 th May | Adani Ports |
| 5 th May | Tata Steel |
| 6 th May | Tata Cons. Product |
| 7th May | HDFC |
| 7 th May | Ultratech Cement |
Macroeconomic data
The domestic macroeconomic data are likely to impact the markets next week. The output of eight core infrastructure sectors grew at 6.8 percent compared to last year, as per data released by the government on Friday, 30 April, during post-market hours. The country’s Goods and Service Tax ( GST) collection for the month of April 2021, hit a new record high of Rs 1,41,384 crore. The schedule for the other macroeconomic data that are going to announce in the coming week are as follows
| Economic Data Next Week | |
| 3 May 2021 | Markit Manufacturing PMI |
| 3 May 2021 | Balance of trade Prel April |
| 5 May 2021 | Markit Service/Comp PMI |
| 7 May 2021 | Loan/ Deposit Growth |
| 7 May 2021 | Foreign exchange reserve |
Assembly election results
The state polls are over in four states and in one Union Territory (UT). Now is the time for the results. Counting of votes for Assam, West Bengal, Tamil Nadu, Kerala, and the UT Puducherry will start from 8 am on 2nd May. The outcome of the election result is predictable. There will be a tough fight in West Bengal as predicted in the exit poll results. The outcome of the voting result may not impact much on the stock markets this time. The market may react positively if BJP gains a majority in West Bengal.
Global market cues
The global markets always impact the domestic markets. So traders should closely watch out for the global market cues and the macroeconomic data that are going to release during the week as per the schedule mentioned below.
| Important Global Macro Data Next Week | ||
| 3 May 2021 | Markit Manufacturing PMI | US |
| 3 May 2021 | Fed Chair Powell Speech | US |
| 4 May 2021 | Markit Manufacturing PMI | GB |
| 4 May 2021 | Balance of Trade, factory orders | US |
| 5 May 2021 | Markit Service/Comp PMI | US |
| 6 May 2021 | BoJ Monetary policy minutes | Japan |
| 6 May 2021 | Markit Service/Comp PMI | GB |
| 6 May 2021 | BOE Interest rate decision | GB |
| 6 May 2021 | 4- Week Avg Jobless claim | US |
| 7 May 2021 | Jibun Bank Markit Service/Comp PMI | Japan |
| 7 May 2021 | Caixin Markit Service/Comp PMI | China |
| 7 May 2021 | Export/ Import | China |
Nifty and Bank Nifty Technical Analysis for ( 3 May – 7 May)
Nifty Futures Technical Analysis for the week ( 3 May – 7 May)
Primary Trend of Nifty futures for next week: Negative
Range-Bound Trend of Nifty futures: All up Moves Initiates Profit Booking (Sale) @ 14700 whereas All Down Moves Initiates Short Covering (Buy) @ 14500
Suppose Nifty share price in futures Moves Above 14702 and sustain. Then you should Buy Nifty futures with 1st Target of 14742 during the day or week with a Stop Loss of 14595 FOR the Target of 14742-14780-14812- 14870
Suppose Nifty share price in futures Moves Below 14595 and sustain. Then you should Sell with the 1st Target of 14545 during the day or week with a Stop Loss of 14702. FOR the Target of 14545- 14505- 14398 -14280
Bank Nifty Technical Analysis for next week ( 3 May – 7 May)
Primary Trend of Bank Nifty future for the week: Negative
Range-Bound Trend of Bank Nifty share price in future: All up Moves Initiates Profit Booking (Sale) @ 33200, whereas All Down Moves Initiates Short Covering (Buy) @ 31800
Suppose Bank Nifty share price in the futures Moves Above 33080 and sustain. Then you should Buy Bank Nifty futures with the 1st Target of 33218 during the day or week with a Stop Loss of 32700. FOR the Target of 33218 – 33350- 33620- 33860
If Bank Nifty shares price in the future Moves Below 32700 and sustained. Then you should Sell with the 1st Target of 32550 during the day or week with a Stop Loss of 33080. FOR the Target of 32550- 32430- 32290 – 31880
FII & DIIs investment in Indian stock markets
Foreign Institutional Investors (FIIs) have withdrawn Rs 4456.32 crores and Domestic Institutional investors have invested Rs 3399.17 crores in the cash market segment during the week ended 30 April. On a monthly basis, FIIs sold Rs 12692.94 crores while DIIs invested 11088.62 crores in the cash market segment.
On Friday, the Indian markets fell sharply, and one of the reasons for this sharp fall was FIIs selling pressure. FIIs have withdrawn almost one-third of their total monthly sell on Friday. Traders should remain cautious as FIIs may start selling aggressively in the coming days.
Coronavirus risk & Vaccination
Coronavirus cases are rising in India, on Friday it hit a record daily high with over 4 lakh new infections. The active cases are now crossed the 32-lakh mark, as per the data updated by the Union health ministry on Saturday.
The Covid-19 recovery rate has further dropped to 81.84 percent now. Maharashtra is the most affected state followed by Karnataka, Tamil Nadu, UP, and Delhi. Several states have already imposed lockdown /restrictions and some are further extended with strict restrictions.
On the vaccine front, the country already administered more than 15 crore vaccine doses so far. The vaccine rollout process has become slow in the month of April as several states have report short of vaccines. But the good news is that India has started importing vaccines, and received its first 1,50,000 Sputnik-V vaccine doses from Russia a spokesman for the Indian foreign ministry confirmed on Saturday.
The news of the further extension of lockdown and strict restriction can dampen the market sentiments in the coming week. Traders need to closely watch out for the coronavirus and vaccine-related news next week.
You can also read daily morning market updates before the markets get open and daily Nifty and Bank Nifty Technical Analysis in the evening on our website.
You may also like to read, These Nifty Stocks gained up to 34% during the week
Algo Trading Definition: Pros and Cons of Algorithmic trading
Happy Investing!!
Editor’s Desk
Disclaimer-
Nifty50Stocks.com has taken due care and caution to compile the data for its Website. The views and investment tips expressed by investment experts on Nifty50Stocks.com are own and only for educational purposes. Nifty50Stocks.com is not SEBI registered Advisors. Nifty50stocks.com advises its users to check with certified and SEBI registered experts before taking any investment decision. However, Nifty50Stocks.com does not guarantee the accuracy, adequacy, or completeness of any information and is not responsible for any errors or omissions or the results obtained from the use of such information. Nifty50Stocks.com especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.
