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| Stock Market: Nifty and Bank Nifty Future Trend |
The first day of the April series in Indian Stock Market has started on a positive note. It is expected that Sensex and Nifty could touch a record high this week. Last Friday, Nifty gained 53.90 points and closed at 11623.90 whereas Sensex gained 127.19 and closed at 38672.91. Bank Nifty was flat on last Friday just gained 6.25 points and end at 30426.80, all points are on spot levels.
On a weekly basis, Nifty and Sensex both gained approximately 1.5 percent and Bank Nifty gained more than 2.5 percent. The Banking sector both PSU and Pvt banks had shown tremendous performance last week and touched a new record. A healthy correction in the banking space at this level can make the sector more attractive.
Other than the Banking sector Energy and Realty sectors gained the most and Auto, IT, Telecom, Cement were the loser in last week. Stockwise top gainers were Indiabulls, Yes Bank, Bajaj Finserv, SBI whereas Eicher Motor, Bajaj Auto, Heromotorco, Wipro were the top loser in Nifty 50 stocks last week.
For the week NSE mid and small cap100 also climbed 3.75 and 3 percent respectively. The top midcap gainers in the last week were Indiabulls Vent, GMR Infra, RCap, DHFL whereas top losers were Jubilant Life, Quess Corp, Prestige Estate, Vakrangee.
The reason for the strong rally in the stock market are:
- Sharp Increase in FII’s inflow into the market in expectation of stable government in 2019.
- Falling crude price and appreciation in rupee against dollar.
- Positive Global Cues and the most important one is
- No negative news in the stock market.
Factors that will influence the stock market next week
The FII’s inflow so far is 48000 cr out of which 33000 cr were invested in the month of March. If FII’s continues to increase the investment in the Indian stock market then definitely the market can touch a new record high this week.
The Nikkei Manufacturing PMI data for March will be announced on 2nd April and Services PMI for March on 4th April. Last months Nikkei India Manufacturing PMI increased by 0.4 compared to January PMI. This month it is expecting lower than last month any negative number can reverse the market mode.
RBI Monetary Policy is scheduled on 4th April second half during the market hour. Inflation is under control, slow IIP growth can welcome another 25 bps rate cut. This can boost the market sentiment particularly in the Banking and Financial sectors.
Also, read RBI Monetary Policy: CRR | SLR | Repo Rate
Appreciation in rupee against dollar, a decline in crude price can appreciate in rupee which can be positive for the Indian stock market
Nifty and Bank Nifty Future Trend Analysis for the Week
Nifty Future Outlook
Nifty Future Primary Trend: Up (Positive)
Nifty Future Range Bound Trend: All Up moves initiates Profit Booking (Sale) @ 11757 whereas all Down moves initiate Short Covering (Buy) @ 11602
If Nifty Future moves above 11718 then you should Buy with 1st Target of 11757 during the day or any point during the week by Trailing the Stop Loss from 11692- 11737- 11796- 11873- 11925 FOR the Target of 11757-11834-11912- 11965
If Nifty Future moves below 11660 then you should Sell with 1st Target of 11641 during the day or any point during the week by Trailing the Stop Loss from 11692- 11621- 11563- 11486 FOR the Target of 11641-11602-11524- 11447
Bank Nifty Future Outlook
Bank Nifty Future Primary Trend: Up (Sideways)
Bank Nifty Future Range Bound Trend: All up moves Initiates Profit Booking (Sale) @ 31125 whereas all Down moves Initiate Short Covering (Buy) @ 30110
If Bank Nifty Future moves above 30616 then you should Buy with 1st Target of 30824 during the day or any point during the week by Trailing the Stop Loss from 30467- 30721- 30974- 31377 FOR the Target of 30824- 31125- 31630
If Bank Nifty Future moves below 30460 then you should Sell with 1st Target of 30317 during the day or any point during the week by Trailing the Stop Loss from 30618- 30213- 29856- 29348 FOR the Target of 30317-30110-29602- 29095
Conclusion:
The technical analysis of Nifty and Bank Nifty chart is looking positive (Up) for the next week. There are many events scheduled for the stock market in the coming week. The PMI data, Auto sales numbers, RBI monetary policy are few of them. Any negative news in the stock market can reverse the sentiment of the market. Traders are advised to remain extra caution on Thursday second half. The stock market may be volatile of Thursday 4th of April due to Options weekly expiry and RBI Monetary policy.
Also, read the article Do you trade in the stock market on Stock News? Avoid five common mistakes to earn money.
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Happy Investing!
Finogyan Team
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