It was a fabulous week for the market players as between Bull and Bear fight, the bull won the game and made a new record high at 15,469.65 marks on Friday's (May 28) trading session. Finally, the benchmark index settled at 15,435.65 marks with a weekly gain of 1.8 percent while Banknifty settled at around 35,141.45 levels with a gain of 1.5 percent on a weekly basis.
Nifty IT, realty, financials, oil and gas performed outstanding along with the Midcap and SmallCap indices. Metals and pharma were showing some weakness during the week. On the Options front, maximum Put OI is at 15,300 strike price followed by 15,000 PE while on the call side, maximum OI is at 16,000 followed by 15,500 strikes, which suggests a broader market range for the upcoming sessions.
Technically, the index has been trading in a bullish trend with Higher Highs and Higher Lows formation from the last couple of days. In the recent trade, the price settled above the prior resistance and made a new record high, which indicates continued strength in the counter. Moreover, the index has also sustained above Ichimoku Cloud formation and 50-Days Moving Averages that suggest bullish presence for the long-term.
Based on the above analysis, we are expecting an outstanding move in the Nifty & BankNifty for the upcoming week. Hence, on the higher side, Nifty may test the target of 15,600-15,700, whereas support is placed at 15,200 levels, while BankNifty may reach towards the level of 36,500/37,000 and may find the support at 34,200.
SBI and Grasim Industries were one of the top gainers for the week.
SBI: The share price movement was aided by better-than-expected Q4 result. Its earnings were boosted by lower provisioning and resolution of a large corporate loan account. SBI management seemed to be optimistic on the asset quality front, despite the economy being hit by the second wave of the pandemic.
Grasim Industries: The company reported better-than-expected Q4 numbers. The company reported strong operational and financial performance in all the business segments in Q4FY21.
Sun Pharma: On the weekly loser front, Sun Pharma was one of the top loser. The company has reported its Q4 number, which were below the streets expectations. Its earnings were impacted by an exceptional loss linked to the settlement of various litigation of its subsidiaries.
JSW Steel: The stock witnessed negative share price movement. With news of China taking actions to soften the steel prices, there was certain softness in the steel prices. Based on this news there was profitbooking in the stock.
(The writer is Executive Director, Choice Broking)