Last week – review
Last week, major fall came on Friday on news of HDFC & HDFCBANK leading the fall. This week’s rally is almost same as last Friday’s fall. Indices took support at lower level and face supplied at higher level as market continues to trade in range. Corporate earnings continue to drive market and will continue to do so.
Technical Insight
• Nifty RSI @ 68.99 & RSI average @ 68.09. Nifty range of 18137 to 18498 remain very important. Nifty RSI trading near 70 level which is considered as over-bought zone.
• Banknifty closed at 43793 above last Thursday’s day high of 43739 can be considered as fresh break-out. Banknifty around 43125 level now remains important support level.
Approach on Technical: Indices are showing some sign of distribution at higher level. Indices had rallied of more than 7% – 9% on Nifty & Banknifty without any major correction.
Nifty @ 18137 & Banknifty @ 42685 are important support level we are looking for, Indices after consolidation this week may continue its towards its target of Nifty @ 18498 & Banknifty towards 44020 & 44151.
Fundamental Insight
1) India’s CPI Inflation Falls To 18-Month Low In April
2) IIP: India’s Industrial Output Grew 1.1% In March
3) India’s Forex Reserves Jump By $7.2 Billion To Nearly $596 Billion
Market View & Strategy
KARNATAKA election result will impact Monday’s opening, global cues continue to keep market on edge. India’s CPI inflation data came at 4.7% will be positive whereas IIP data showing growth concern will be negative for market sentiment.
Our strategy this week would be to continue to focus on booking profit on market rally & stock rotation. We would prefer to deploy fund only in case of there is major correction. We are worried about global cues could bring correction and increase in volatility which could trigger correction in Indian market as well.