Weekly Market Review:
This week the Indian financial market showcased a flurry of emotions as the key indexes had a high level of volatility. However, the flurry of emotions brought in good news as both the key indexes ended the week on a positive note. This is as the Nifty rose by 1.1%, while the Sensex rose by 0.9%. However, the bullishness seen in the key indexes was not extended to the broader indexes. I say this as the Nifty SmallCap fell by a whopping 2.1%, while the Nifty MidCap fell by 1.7%.
Coming to the sectoral front, we saw the indexes had a mixed performance. This is as the Nifty Financial, Bank and FMCG were the biggest gainers as they rose by 3.2%, 1.4%, and 2.1%, respectively. However, on the losing front, Nifty Pharma was brutally hammered as it fell by a whopping 5.5%. This is as numerous Indian pharmaceutical firms have been taken to court by the U.S. Government over inflating prices on run-of-the-mill medications.
This week there were three stocks in the news. The first stock in the news was Bajaj Auto (NS:BAJA) as the company reported its results on Friday which caused the stock to rise by 3.3%. This is as the net profit rose by 21% to Rs 1,306 crore on a year-on-year basis. The second stock in the news was Spencer’s Retail as the firm announced that it is in the process of acquiring Nature’s Basket from Godrej Industries (NS:GODI) for Rs 300 crore. This resulted in the stock rising by 4.1% on Friday. The third stock in the news was Aurobindo Pharma (NS:ARBN) as the USFDA classified the inspection as Official Action Indicated (OAI) which resulted in the equity falling by 7.53% on Friday.
Now coming to the market moving news, in the coming week there are three noteworthy statistics that are set to be released. These are:
- May 23: Lok Sabha election 2019 Result
- May 24: FX Reserve Data
- May 24: Bank Loan Growth Data
India VIX: In the chart, I had shared of the VIX I had highlighted that by the end of the week the fear indicator will reach the range between 27.11 and 28.85. This proved to be very accurate as the VIX on Friday had touched the 28.85 level. Moreover, the body of the VIX candles was exactly sandwiched between the shared targets on Wednesday, Thursday and Friday.
Nifty Index: In the chart, I had shared for the Nifty I had highlighted two support levels and two resistance levels as the range. The support levels I had shared were at Rs 11,156.24 and Rs 11,071.98. On the other hand, the resistance levels I had shared were at Rs 11,292.16 and Rs 11,342.41. These levels were shared on Thursday before the market opened and proved to be very accurate. This is as on Thursday the indexes lower wick took support from the Rs 11,156.24 level while the upper wick was stopped by the lower resistance level at Rs 11,292.16. Moreover, this proved to be true also on Friday as the index did not break below the highlighted support level and rose to the anticipated resistance level. Hence, due to it reaching the highlighted levels I will be sharing a new chart for it on Monday morning before the market opens.
Bank Nifty Index: In the chart, I had shared for the Bank Nifty I had highlighted three support zones and two resistance zones. The support levels I had highlighted were at Rs 28,890.19, Rs 28,535.13 and Rs 28,380.07. On the other hand, the resistance levels I had highlighted were at Rs 28,930.69 and Rs 29,010.33. On Friday, we saw the indexes open higher than the prior day which resulted in the index utilizing the support zone at Rs 28,890.19 which resulted in it rising to the highlighted resistance levels.
Axis Bank: In the chart, I had shared of Axis Bank I had highlighted two support zones and three resistance zones. The support zones highlighted were at Rs 717.80 and Rs 710.85. On the other hand, the resistance levels highlighted were at Rs 731.90, Rs 736.55 and Rs 742.45. The support levels proved to be unfruitful as the stock’s lower wick took support around the Rs 727 range which was way above the highlighted support. However, the resistance levels were spot on. Moreover, I will be updating this stocks chart on Monday morning as it reached the highlighted levels.
Jet Airways (NS:JET): In the chart, I had shared for Jet Airways I had highlighted two support zones and two resistance zones. The support zones highlighted were at Rs 123.35 and Rs 113.55. On the other hand, the resistance levels highlighted were at Rs 139.55 and Rs 146.00. These levels proved to be correct as the stock formed a box range that fell exactly between these levels.
Reliance Industries (NS:RELI): In the chart, I had shared of Reliance Industries I had highlighted two support zones and two resistance zones. The support zones highlighted were at Rs 1,231.65 and Rs 1,210.20. On the other hand, the resistance levels highlighted were at Rs 1,273.80 and Rs 1,285.25. I had shared the chart of Reliance Industries on Wednesday pre-market open. The support levels were not useful as the stock opened above them. However, the resistance levels were spot on as the stock on Wednesday, Thursday and Friday reached all the levels.
Yes Bank (NS:YESB): In the chart, I had shared of Yes Bank I had highlighted two support zones and two resistance zones. The support zones highlighted were at Rs 132.85 and Rs 140.60. On the other hand, the resistance levels highlighted were at Rs 155.80 and Rs 169.05. These levels proved to be fruitful as the stock fell right to the levels highlighted on Thursday and Friday.
Coming week:
The coming week will be one filled with volatility as the exit polls are slated for release on Sunday 19th May which will affect how the market opens on Monday. Moreover, the results will be released on Friday, 23rd May which will cause the stock market to wobble like crazy. Hence, due to this, I believe traders ought to place a higher emphasis on intraday trading as the swings will be very profitable if caught accurately. Moreover, to help with this all the charts that will be shared by me this week on my twitter handle will be on an intraday basis as it will help you get the swings.
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Disclaimer: The investments discussed by Sandeep Singh Ahluwalia may not be suitable for all investors. Therefore, you must trust your analysis and judgment the equity before making investment decisions. The report provided is for informational purpose only and should not be interpreted as a proposition to buy or sell any securities.