The current week has been one of the most important weeks in recent times.
In Friday's (August 6) trade, the Nifty August futures contract has crossed its all-time high of 15970 levels and touched 16,350 levels on the back of good volumes, it has been a great week for investors with returns over 3% over the past five days.
The good thing is, there is strength in this breakout and companies across the board have shown good strength, there is a good synergy in this breakout and all sectors are pulling their own weight.
Most banks are bouncing off their respective support levels and there is room for good upside. The Bank Nifty index has given a strong close this week and after a sluggish few week it finally looks like the bull market is forming a good base to resume its upward trend.
Coming to the IT sector, this week has been another fantastic one for companies across the board, it returned an impressive 2.7% this week and is poised to do very well.
The Auto and the Pharma sectors still seem to be in a consolidating range with mediocre returns for the week.
Top Gainers
Eicher Motors: Has had a great week and has returned more than 8.6 percent this week.
Bharti Airtel: With an impressive 8 percent returns for the week, Bharti Airtel has stood out in terms of performance and has broken its resistance around 577 levels.
HDFC: Has also returned a neat 7 percent over the previous week and it remains to be seen if it can break out from its resistance at 2640 levels
Kotak Mahindra: Has had a great run during the week too, returning over 7 percent, it has been a very bullish week for banking in general
Tech Mahindra & TCS: Continuing with its previous week's trajectory, Tech Mahindra and TCS have given a strong weekly close with returns north of 4 percent.
Top Losers
UPL: The stock has returned a negative 3 percent over this week and is testing a crucial support of 770 levels, should this break, we could see lower levels on this counter
NTPC: The stock has had a sluggish week and is 1 percent down from its previous week.
UltratechCement : The stock too has returned negative returns of 1% this week
Cipla: The stock has marginally declined over its previous week by around 0.7 percent.
Outlook for next week
The coming week may result in some consolidation. Nifty may test 15,950-16,150 levels before it resumes it up trend. On the higher side we will see some resistance for Nifty at 16,400 and 16,450 levels.
Banknifty looks very bullish-- on the break of 36,200 levels it may give a quick move to 37000 levels.
The FMCG sector should continue trending higher, there is no weakness on the charts. Ditto, for the IT sector, which has led the rally in recent times from the front and the coming week should be no different.
We expect the Pharma and the Auto sector to struggle a bit in the coming week and we could see negative returns in the stocks within these sectors.
All in all, we expect the bullish sentiment to continue over the coming week and Nifty 50 should print higher values over the course of this week.
(Gaurav Udani, is Founder & CEO, Thincredblu Securities)
