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| Nifty and Bank Nifty Trend |
Indian stock market recovered from the days low last Friday. Almost all sectors enjoyed the northward ride leads by Oil & Gas, metal, constructions, capital goods and IT. The market reacted to the positive global cues and India’s macro numbers.
There was only four trading session in the last week. On a weekly basis, Nifty and Sensex gained 129.70 and 403.22 points respectively. Bank Nifty jumped 850.85 points during the week.
Last Thursday, CPI and IIP data had released, the retail inflation has marginally increased to 3.21% in August from 3.15%. The rise in inflation is due to the increase in food and vegetable prices. The August retail inflation is under the comfort zone of RBI for another rate cut. This is one of the reasons why market sentiment has improved on last Friday.
The IIP growth rises to 4.3% in July compared to 2% in June but if we compare with last year same month growth is still subdued. The low growth is because of poor performance by the manufacturing sector. This is another reason why investor's sentiment improved on Friday. Investors' hopes are still alive on the rate cut and more stimulus to revive the industrial growth.
On the global front, US President Donald Trump has postponed the tariff hike on Chinese goods ahead of trade talks next month. Rate cut and stimulus by the European Central Bank (ECB) also helped to improve the global and domestic market sentiment last Friday.
Nifty and Bank Nifty updates last week
The Nifty midcap and smallcap 100 also jumped last week. Nifty midcap gained 360.45 points and Nifty smallcap was up 174.4 points. Nifty small caps index gained more than 3% in the last. Time has come to pick fundamentally good stocks in mid and small-cap space.
The top five Nifty50 gainers of the week are Yes Bank, BPCL, Tata Motors, SBI, and Hindalco. The five losers of Nifty50 stocks are Zee Ent, HCL Tech, Wipro, TCS, and NTPC.
FIIs are the net buyers in the cash & F&O segment last week bought Rs 456.36 crores and Rs 9025.48 crores. DIIs also bought Rs 1901.63 crores in the cash segment last week. Indian rupee appreciates 0.92% and closed at Rs 70.99 against the US dollar. Brent crude oil future price fell 2.14% last week and closed at $ 60.15 per barrel.
Nifty and Bank Nifty Trend for next week
Primary Trend of Nifty: Trend Up
Range-Bound Trend of Nifty:
All up Moves Initiates Profit Booking (Sale) @ 11200 whereas all down moves Initiates Short Covering (Buy) @ 10950
If Nifty moves above 11125 then you should Buy with 1st Target of 11155 during the day or any point during the week by Trailing the Stop Loss from 11078- 11138- 11170- 11192 FOR the Target of 11150- 11197- 11220- 11280
If Nifty moves below 11074 then you should Sell with 1st Target of 11045 during the day or any point during the week by Trailing the Stop Loss from 11125- 11030- 10990 -10960 FOR the Target of 11045- 11015- 10980 -10955
Primary Trend of Bank Nifty: Trend Up
Range-Bound Trend of Bank Nifty:
All up moves Initiate Profit Booking (Sale) @ 28550, whereas all down moves Initiate Short Covering (Buy) @ 27850
If Bank Nifty moves above 28250 then you should Buy with 1st Target of 28320 during the day or any point during the week by Trailing the Stop Loss from 28120-28350- 28460 FOR the Target of 28320 - 28494 - 28574
If Bank Nifty moves below 28120 then you should Sell with 1st Target of 28000 during the day or any point during the week by Trailing the Stop Loss from 28250- 27974- 27865 FOR the Target of 28000- 27850- 27560- 27778
Conclusions:
Monday the Indian stock market will open as per global cues, it is expected to be positive. Traders are advised to remain cautious around 12 pm on Monday as WPI numbers will be announced. The market is expected to be volatile during the time of WPI numbers. Traders can check out above Nifty and Bank nifty share price target for next week's trade.
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Happy Investing
Finogyan Team
Disclaimer-Finogyan has taken due care and caution in compilation of data for its blog. The views and investment tips expressed by investment experts on Finogyan are their own and not that of the website or its management. Finogyan is not SEBI registered Advisors and advises users to check with certified and SEBI registered experts before taking any investment decision. However, Finogyan 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. Finogyan especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.
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