Last week – review
Indices on weekly basis closed flat and traded in narrow range, momentum seen in Mid-cap & small-cap and ended the week with minor gains. We went into trade with a view that any rally to be utilized for reducing the exposure and incase of any correction will deploy fund which is currently available.
Technical Insight
• Nifty RSI @ 63.88 & RSI average @ 64.87. Nifty extension of rally from 17553 to 18458 & retracement to 18060 – extension of rally to test 18619 & 18965.
• Banknifty RSI @57.72 & RSI average @ 61.88. Banknifty closing at 43937 on Friday around 44018 – previous Friday’s level.
Approach on Technical: We will start our view on technical based on indicative opening of SGX which will be around 80 – 100 points higher compared to Friday’s closing.
Nifty @ 18458 & Banknifty @ 43552 will act as support level for uptrend to remain positive, Indices are heading higher on Nifty towards 18965 & Banknifty towards 44959.
Fundamental Insight
1) GST Collections Grow 12% To Rs 1.57 Lakh Crore in May
2) Forex Reserves Decline for Second Week To $589.14 Billion
3) India’s GDP Grows Faster Than Expected At 6.1% In Q4, 7.2% In FY23
4) India Restricts Fiscal Deficit to Targeted 6.4% Of GDP In FY23
5) Bank Credit to Industry Decelerates in April to 7%: Reserve Bank Of India
6) Core Sector Growth Flat in April
Equichain Wealth: Market View & Strategy
RBI MPC meeting on 8-Jun-23, with previous inflation data well below 6% and within comfortable range, market participant expected to announce pause and maintain its stance – “Withdrawal of accommodation”. RBI may change norms for CRR which could be beneficial for Banks, we expect banks to have another round of rally.
Going into trade this week, we remain positive and expecting momentum to accelerate supported by pause in interest rate by RBI on 8-Jun-23 & US Fed on 14-Jun-23. We will position our self with bullish view and may deploy fund fully before event or post event. We expect huge market swings with a positive bias as Nifty may soon test new life time high and Banknifty toward 45000 level.