Mr. Mustafa Nadeem, CEO, Epic Research for your consideration:
Nifty ends up for a Fifth consecutive week making a record high 10719 levels Since meltdown that happened in February 1st week. This has been one of the best monthly gains for Indices as well as compared to last few months and recovering the losses posted in March and Feb by more than 60% to end on a strong note. Bank Nifty also closed above 25200 which was acting as a resistance and covered its all previous month losses to end on a strong note with possible extensions on further upside.
The week started off on a cautious note as investors met global markets which were dwindling with higher volatility and a down move in SPX amidst that. Despite negative cues, strong earnings reported from US companies with mostly posting above estimates numbers and a number of positive data from economic front kept bulls intact. The European markets lead the overall sentiments as they kept on extending the gains.
The IT Sector was the flavor of the street for this week as well as robust numbers from TCS triggered buying in IT index along with Rupee depreciation that added the cherry on the cake. This week it was a star-studded line up in results with Majors like Axis, Maruti, and Reliance etc. The whopping results from Axis with a loss of +210 Cr on accounts of provisioning kept investors unfazed. It will be the giant Reliance that will have a result on street declared today and is widely expected to post an increase of above 2% on QoQ basis while around 20% on YoY basis.
The rollover statistics was also indicating a strength since the rollover figure was much higher than average of 6 months. Media and telecom are expected to do well in coming series along with financials and Pvt Banks. Real estate and Chemicals & paints may see some pressure. Nifty has next resistance at 10850 - 10810 level while support which was previously at 10400 is now shifted to 10500 - 10550. These levels will be crucial for bulls to maintain on lower side while on the upside to be tested. Bears will have an opportunity only if we see price action below 10500 on the closing basis.
Bank Nifty as well is expected to be ranged between 25100 - 25600 levels and should be seen as overall buying strategy on dips. In the coming week, we may see more action since there is a list of results to be announced by majors like Vedanta, Dabur, HCL Tech, Ambuja and Marico with many other. Stock specific action will be seen.