Weekly Market Updates: Technical analysis of Nifty and Bank Nifty trend ahead of Expiry

 

Weekly Market Updates: Key factors for next week and technical analysis: Last week Nifty gained 271.5 points or 2.74% and at 10244.40 while Sensex was up by 950.84 points or 2.81% and at 34371.73. Bank Nifty was volatile last week, it has gained 683.55 points or 3.32% and closed at 21338.10 levels.

The Nifty midcap 100 index gained 226.46 or 1.58% and at 14565.85. And the Nifty smallcap 100 index also gained 183.25 points or 4.26%  and at 4576.75

 

Top gainers and losers in Nifty50

Weekly Nifty50 Gainers
Company Name	LTP	Previous Close	Change (%)
Bajaj Finserv	5899.80	5285.95	11.61
Reliance Industries	1759.40	1588.80	10.74
Bajaj Finance	2698.60	2450.15	10.14
Wipro	222.05	207.90	6.81
UPL	436.90	411.65	6.13
Weekly Nifty50 Losers
Company Name	LTP	Previous Close	Change (%)
IndusInd Bank	483.65	528.45	8.48
ITC	184.05	193.90	5.08
NTPC	93.00	96.90	4.02
Bajaj Auto	267435.00	2782.15	3.87
IOCL	85.30	88.30	3.40

Top gainers and losers in Nifty Midcap and Smallcap

Weekly Nifty Midcap 100 Gainers
Company Name	LTP	Previous Close	Change (%)
Future Consumer	14.50	11.45	26.64
Bank Of India	51.45	40.80	26.10
Weekly Nifty Midcap 100 Losers
Company Name	LTP	Previous Close	Change (%)
Indraprastha Gas	447.65	482.00	7.13
Indian Hotel Co	83.35	88.80	6.14
Weekly Nifty Smallcap 100 Gainers
Company Name	LTP	Previous Close	Change (%)
ITI	106.80	82.25	29.85
TV 18 Broadcast	37.55	29.45	27.50
Weekly Nifty Smallcap 100 Losers
Company Name	LTP	Previous Close	Change (%)
Lemon Tree Hotels	25.75	28.95	11.05
Just Dial	359.35	392.80	8.52

 

Key factors that influenced the market last week.

The Wholesale Price Index data shows there was a deflation of 3.2% in May due to fuel and power. Whereas inflation on food articles recorded at 1.3% as compared to 2.55% in April.

Last week 20 Indian soldiers were killed in a “violent face-off” with Chinese troops in Ladakh border. The market sentiment was negative on 16th June and was nervous for two days.

The Market sentiments improved after India was announced the 9th largest recipient of foreign direct investments in 2019 attracted 51 billion dollars of inflow as per the World Investment Report 2020. The amount increased from 42 billion dollars FDI received in 2018 when India was ranked 12th in the world.

The global markets reacted positively to the US Federal Reserve’s latest announcement of the corporate bond purchasing program. Indian market sentiments also improved after the news.

Indian market sentiments improved, particularly the Financial sectors after the CRISIL’s report. The report stated that the liquidity cover for non-banking financial companies (NBFCs) has not been affected much in April and May. As they managed partial collections and on lack of fresh disbursements.

Stocks that were in the news last week are

Coal India trade unions plan 3-day strike next month against commercial minings

Tata Power arm bags 120 MW solar power project order from GUVNL

HPCL to invest Rs12000 crore in capital expansion this fiscal

Bandhan Bank says collection efficiency improves 55% in the second week of June

Birla group’s Hindalco looks at exports to keep earnings up as coronavirus hits local demand.

Moody’s downgrades Tata Motors ratings changes outlook into negative

 

Amazon Fashion Wardrobe Refresh Sale 19th-25th June Up to 70% OFF

 

Key factors that will influence the market next week

Q4 Results

Grasim

Grasim has announced its Q4 results on 13th June, the company reported 32% growth in consolidated profits during the March-end quarter and at 161% growth for the full fiscal FY20.

The consolidated profit after tax for Q4FY20 stood at Rs 1506 crores against Rs 1144 crore in the last year of the same period. However, the company’s revenue declined by 11% to 19902 crores.

The company has reported a 19% decline in EBITDA to Rs 3243 crores. For the full year, profit was announced Rs 4425 crores while revenue grew by 0.5% to Rs 77625 crore. Ebitda grew by 3% to Rs 13846 crores. The share price reacted negatively after the Q4 results but recovered at the end of the week.

Tata Motors:

The Auto Major Tata Motors posted a consolidated net loss at Rs 9863.75 crores for the March-end quarter as compared to a net profit of Rs 1108.66 crores in the last year same period. Revenue from the operations dropped 27.7% to Rs 62492.96 crore during the quarter under review, from a year ago.

The share price of Tata Motors reacted negatively but recovered after two days.

Q4 Results for Next Week

Q4 Results dates for Nifty50 Stocks
20th June	Power Grid Corp
24th June	GAIL
26th June	ITC

 

FIIs & DIIs data last week

Last week FIIs were sellers and DIIs were the buyers in the cash market. FIIs sold Rs 3321.9 crores whereas DIIs bought Rs 2656.55 crores in the cash segment. Though FIIs were the seller in the cash market for the initial three days of the last week, they bought Rs 1603.57 crores in the last two days.

If the FIIs buying spree continues, then we can see an upward move in the Indian share markets. Traders should follow the FIIs movement in the cash market next week.

 

Global cues

Last week we saw a positive movement in the market after the US Fed has announced the corporate bond purchasing program. The resurgence of coronavirus cases in Beijing in China and the US is a concern for the trader at this moment. Any further negative news on this front can create a subdued global market sentiment.

Traders need to follow the global markets closely to get the market trends in the absence of domestic triggers in the market.

 

You may like to read, 10 Best Stock Market books 

 

Domestic cues

Last week we saw Indian markets react negatively after the news of Indian soldiers killed in a “violent face-off” with Chinese troops in Ladakh border. The market later overlooked the India and China tension and traded as per the positive global market cues. Further escalation on this issue can witness a negative sentiment in the market next week.

The increase in coronavirus cases witnessed after the relaxation in lockdown in India. If the coronavirus cases increase further then the government may think of reimposing lockdown in some places. This may also dampen the market sentiments, traders should keep updates of the above two news on the domestic front.

 

Derivative Expiry

Next week, the derivative markets will have monthly expiry on 25th June. Nifty futures in the June series gained more than 6% whereas the Bank Nifty Nifty futures gained 9% so far. It would be interesting to see how the Nifty and Bank Nifty future reacts in the coming expiry week.

Technically the market is looking good, Nifty & Bank Nifty futures can even add another 2-4% in the coming week ahead of expiry. But it all depends on the other factors mentioned above. Let us check out the technical analysis of Nifty and Bank Nifty for the next week.

 

Technical analysis of Nifty50 and Bank Nifty

Nifty technical analysis in Futures

Primary Trend of Nifty50 Futures next week: Positive

Range-Bound Trend of Nifty50 Futures: All up Moves Initiates Profit Booking (Sale) @ 10450 whereas All Down Moves Initiates Short Covering (Buy) @ 9950

If Nifty50 futures share price Moves Above 10260 and sustain. Then you should Buy with 1st Target of 10315 during the day or week with a Stop Loss of 10170 FOR the Target of 10315- 10349- 10380- 10460

If Nifty50 futures share price Moves Below 10170 and sustain. Then you should Sell with 1st Target of 10138 during the day or week with a Stop Loss of 9185. FOR the Target of 10138- 10090- 10050- 9950

Technical analysis of Bank Nifty share price in Futures

Primary Trend of Bank Nifty future for next week: Positive

Range-Bound Trend of Bank Nifty Future: All up Moves Initiates Profit Booking (Sale) @ 22150, whereas All Down Moves Initiates Short  Covering (Buy) @ 20740

Bank Nifty share price future Moves Above 21395 and sustain. Then you should Buy with the 1st Target of 21570 during the day with a Stop Loss of  21170. FOR the Target of 21570 – 21710- 21840- 22150

If Bank Nifty share price future Moves Below 21170 and sustained. Then you should Sell with the 1st Target of 21060 during the day with a Stop Loss of 21395. FOR the Target of 21060 – 20930- 20740-20620

Crude Oils

The crude oil price gained last week, Brent and WTI both gained around 9% on a weekly basis. The fear of a resurgence of coronavirus pandemic in the US can further correct the crude oil price. The correction of crude oil means a fall in the equity market in the US and it may replicate to other global equity markets. 

Traders should keep updates about the crude oil prices to trade in the equity for next week.

 

Conclusions

The Indian share market is looking good for next week. FIIs started buying for the last two days hoping this would continue next week. There is no further escalation in the India China tension front. The increasing coronavirus cases in the US, China, and India could be a concern for the market next week. But technically the market is going to trade on a positive note if the global market supports.

You can also follow our daily Nifty and Bank Nifty technical analysis report on our Website on Live.

 

You can also read, Your Stock Broker will never say these Hidden Charges.

                              Algo Trading Definition: Pros and Cons of Algorithmic trading

                               

If you like the post please share with your friends and others

 

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 their own and not that of the website or its management. Nifty50Stocks.com is not SEBI registered Advisors and 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 for 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.