Bulls lost its winning streak last week and finally bears grabbed the opportunity. Just as we expected, Nifty made a high at 18594 (our resistance was 18500) and observed some profit booking in the entire week and made a low of 18051 and settled at 18144 down by 1.15% on weekly basis. Further Nifty’s immediate support is at 18025 and has a very strong support at 17950 levels below which some panic selling can be observed and it will break the trend line indicating early signs of change in trends. On upside it may test 18366 as a pull back. If it sustains above this level, only then bulls may be back on track. On options front Nifty’s Highest OI data on call side is at 19000 followed by 18200 / 18500 and on put side highest OI is at 17500 followed by 18000 / 17000 levels
On the other hand Bank Nifty observed some pressure in the early week but saw sharp surge in the banking index led by strong upside in PSU Banks and a few private banks and made a new all-time high at 40582 and settled at 40396 up by 2.52% on weekly basis.
In the coming week since Nifty is under pressure Bank Nifty may show some correction but it is a buy on dips till its support at 39850 levels and it has a strong potential to touch 41650 levels on upside in next week. A few banks which may support the index are ICICI Bank, Axis Bank, HDFC Bank and Indusind Bank. On Options front, Highest OI on call side is at 40500 followed by 42000 & 41000 and on Put side Highest OI is at 40000 followed by 38000 / 39000.
On sectoral front PSU Banks have outperformed the market in previous week followed by Pvt banks and financial services while Nifty FMCG, Metal, Realty and Pharma were highly beaten sectors in previous week.
In coming week pharma and FMCG stocks should bounce back while Metal stocks may still be under pressure.
KEC has made a new all time high and closed above its major resistance. Buy the stock at CMP 492 and on dips till 475 with a SL of 460 for the targets of 533 / 584 / 635.
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