Last week – review
Going into trade last week, we expected Nifty range 21506 – 21834 & Banknifty range 47575 – 48636, Nifty tested both end of the range while Banknifty manage to hold lower end of the range. Banknifty was showing weakness on chart and it has underperformed. IT result was key highlight for this week as INFY narrowed guidance to 1.5% – 2% indicating worst may be behind as TCS report operating margin at 25%.
Technical Insight
• Nifty range for this week could be seen as 21631 to 22306. Nifty move above 21834 has opened further to 22306 level.
• Banknifty range for this week could be seen as 47575 – 48636. Banknifty range for this week remains same as last week.
Approach on Technical: IT result provided trigger to Nifty this week and Banknifty could take cues from HDFCBANK result due on 16-Jan-24. Banknifty to take move on either direction.
We will turn cautious or bearish if Banknifty breaks 47575 and fresh upside momentum can be seen on Banknifty above 47980 to 48636 level. Banknifty could led the positive momentum as chart indicates positive from consolidation.
Fundamental Insight
1) India’s CPI Inflation Rises to Four-Month High Of 5.69% In December
2) IIP: Growth In India’s Industrial Output Falls To Eight-Month Low At 2.4%
3) Parliament’s Budget Session Likely Between Jan. 31 And Feb. 9
Equichain Wealth Advisors: Market View & Strategy
HDFCBANK result could provide decisive direction to Banknifty and could led next round of rally. IT stocks rallied this week helped Nifty cross its previous and closed at life time high. HDFCBANK ‘s quarterly business updates were positive and no negative surprise could support to HDFCBANK stock prices which has seen correction in last two weeks after year end rally which on HDFCBANK which crossed 1700 level.
We remain positive and would continue to maintain bullish stance unless we see negative cues dominating and market direction turns negative. Our strategy would to remain long on Banks, Defense stocks and Infrastructure stocks going into Vote-on-account (mini-budget).