30-Jul-22 Technical & Fundamental Insight

Last week, going into trade Nifty & Banknifty witness highest closing for July 2022 and short covering rally continued as Nifty crossed 17000 convincingly.

We are looking at two important factors, first is the initial signs of inflation slowing down and the second is how geo-political situation. In case tension escalates between US & China, things could get a flip to the sentiment we have seen in last 2 weeks and this may turn out to rally in bear market and opportunity to exit.

Last week review: going into trade Nifty & Banknifty witness highest closing for July 2022 and short covering rally continued as Nifty crossed 17000 convincingly.

Back home, HDFC twins & BAJAJ twins did the fire work as result of both BAJAJ companies had positive surprise. We are half-way down the Q1FY23 result season, so far, no major disappointment in results as expectation is down as compared to previous quarter.

Nifty range for this week 16691 to 17674 and Banknifty range for this week 36926 to 38448. We expect upper end of the range to be tested later in the week as RBI MPC policy outcome on 5-Aug-22.

Fundamental Insight

US Fed have increased interest rate by 75 bps on 27-Jul-22 in-line with market expectation. US Fed chair J Powell guided that in next US FOMC meeting on 21-Sep-22, decision on interest rate will be based on data.

Result season for Q1FY23 have not been disappointing so far, as market went into result season with very low expectation after debacle in Q4FY22 result season where market witness major sell-off.

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30-Jul-22 Fundamental & Technical Insight.pdf