Last Friday due to heavy selling pressure in large-cap stocks like Reliance Industries (RIL), Infosys, Yes Bank dragged down the market. Reliance Industries dropped 5 percent despite better better-than-expected earnings posted on last Wednesday. The Nifty saw a decline of 1.6 percent whereas Sensex was lost 1.2 percent last week. Small and mid-caps shares were also down 10% to 30% last week due to heavy selling pressure.
Why the Sensex| Nifty| Bank Nifty dragged:
Last week market fall was due to many negative factors like Liquidity issue in the NBFC sector, week macro data like rising inflation, fall in IIP numbers and week global cues. There was also a concern of high Crude oil price, rupee depreciation and Trade war etc which are not yet solved.
Highlights of Stock Market Outlook: October 22nd to 26th October 2018
The volatility would continue in the coming week also because of expiry on Thursday. The quarterly result of few large-cap companies would be announced in the next week which can also make the market volatile. RBI can further take up measures to solve the liquidity crises for the NBFC's, which may boost the Bank Nifty. And also read Do you trade in the stock market on Stock News? Know how to avoid five common mistakes to earn money.
Nifty and Bank Nifty Levels for next week:
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| Stock Market Outlook Sensex Nifty Bank Nifty Levels for October 22nd to October 26th, 2018 |
Nifty Weekly Outlook
Primary Trend: Corrective OHLC-(10500.55/10699.95/10246.36/10303.20)
Range Bound Trend: All up moves initiates Profit Booking (Sale) @ 10455 whereas all down moves initiate Short Covering (Buy) @ 10175
If Nifty Moves Above 10368 then you should Buy with 1st Target of 10540 during the day or any point during the week by Trailing the Stop Loss from 10170-10280-10340-10450-10550-10620 FOR the Target of 10630-10715-10825
If Nifty moves below 10260 then you should Sell with 1st Target of 10085 during the day or at any point during the week by Trailing the Stop Loss from 10460-10350-10285-10180-10075-10000 FOR the Target of 10000-9915-9810
Primary Trend: Corrective OHLC-(25399-25892.90-24860.10-25076.75)
Range Bound Trend: All up moves initiates Profit Booking (Sale) @ 25410, whereas all down moves initiate Short Covering (Buy) @ 24775
If Bank Nifty moves above 25210 then you should Buy with 1st Target of 25600 during the day or any point during the week by Trailing the Stop Loss from 24750-25000-25150-25375-25625-25775 FOR the Target of 25800-25995-26240
If Bank Nifty moves below 24965 then you should Sell with 1st Target of 24570 during the day or any point during the week by Trailing the Stop Loss from 25450-25175-25025-24775-24550-24375 FOR the Target of 24375-24175-23950
Conclusion:
The Sensex, Nifty and Bank Nifty had taken support from the lower levels last Friday. Though the chart indicates the corrective phase of Nifty, Sensex, and Banknifty, the market can bounce back with some positive news for a short-term. It is advised to book profit on rise. So far unless the factors mentioned above gets resolved the market will be in a range bound zone.
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Finogyan Team
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