Markets for the Week : 22th August - 26th August

 WELCOME TO THE WEEKLY BLOG ON INDIAN EQUITIES MARKETS

This week the blog will be concise as there were no major Macro Domestic / Global factors affecting the markets. Also no key Policy Decisions, Results / material news. For this week the blog will be restricted to routine continuing outlook.

Important Weekly Closes:

PARTICULARS

WEEKLY CLOSE

% CHANGE

Sensex

17758.45        

+0.31%

Nifty50

59646.18

+0.31%

Bank Nifty

38985.95

-0.14%

Gold

51479.00    

-2.10%

Silver

55496.00

-6.38%

Crude Oil

90.44 Usd/Bl    

-1.79%

USDINR

79.91

+0.36%         

Nifty 50 

After closing positively for 4 consecutive weeks, the Nifty50 now faces a strong resistance between the 19970-18070 zone. 

On a shorter time frame the Nifty was overstretched and required a retracement which happened on Friday 19.08.2022, wherein the Nifty50 had an intraday correction of more than 200 points.

Nifty now has a strong support at 17500, the sustenance of which is very important. 

Outlook for the coming week : Nifty will remain sideways / downside. A direct upside above 18000 would put the Nifty in an overstretched zone again. Long Nifty50 only above 18070 on closing basis.

Nifty BANK

Nifty Bank has a very strong resistance above 40000. A decisive close above the same will only bring the new rally on Banking Stocks.

Outlook for the coming week : Nifty Bank will remain sideways / downside.

Nifty AUTO

After closing positively for 8 consecutive weeks, the Nifty Auto now has displayed the first sign of Reversal. There is no resistance zone as Nifty Auto is at an all time high.

Stock Specific :  

Mahindra&Mahindra, after the recent rally of approx. +45% in last 4 months the stock is now facing resistance on weekly chart at 1300. Expect the stock to consolidate / be downward in the coming week.

TataMotors: The stock is at its important support zone between 460-450. Any dip towards the same should be an accumulation opportunity.

2 wheeler segment : This segment looks to be positive as compared to 4 wheeler stocks

Nifty FMCG

Crude Palm-Oil prices have remained at considerably reasonable levels and have corrected by -7.13% for this week. This keeps the sector stable.

Stock Specific :  

Britannia and TataConsumer : as stated in the previous blog, continues to underperform, on account of muted results.

HUL : This stock is at a very important support level. A close 2560 would be negative for the stock. 

ITC & NESTLE : These are the only 2 stocks that look positive in an otherwise consolidating FMCG index.

Outlook for the coming week : Nifty FMCG continues to remain strong till it hold 42000 on closing basis on its Index level.

Nifty IT

In the previous blog it was stated that LTTS, Infosys and Wipro looks better, the performance of which has been as under since then:

LTTS : +6.50%, Infosys : -1.00% and Wipro -1.50%.

This sector looks stable and Large Cap. counters should be preferred for accumulation. 

Outlook for the coming week : Nifty IT continues to look positive.


Nifty METALS

This Index looks highly overstretched. 

Adani Enterprises looks to be dragging the Index upwards. A clear avoid.

Tata Steel : The stock has a support between 100-102 and can be accumulated between these levels. 

Hindalco : The stock has a support between 408-400 and can be accumulated between these levels. 

Outlook for the coming week : No specific / clear view. However bias is negative

___________________________________________________________

Markets are at an important support zone. All the above Index levels should be closely watched. 

Current sentiment is "No Bad News is Good News" and markets seemed to have had a decent rally on account of the same discount all the negative geo-political issues and rate hikes.

Moreover in the previous 15 weeks the sentiments have been lifted on account of stronger FII inflows. 

However Markets now lack any fresh triggers for a sharp movement on either side. However the bias remains more towards Consolidation / Downside until any of the resistance levels are taken off decisively. 

A mid-week blog will be published to review the same. Stay tuned.

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