Last week – review
Indices this week ended with cut of under 1% on major indices and Banknifty loss by 1.52%. RBI MPC meeting outcome on 10-Aug-23 – RBI kept repo rate unchanged at 6.50% and continue its stance of “Withdrawal of Accommodation” with 5:1. Indices seen consolidating for 2nd straight week.
Technical Insight
• Nifty on daily chart indicate further weakness. Nifty @ 19160 could act as key support level and Nifty below 19160 could test 18646.
• Banknifty RSI & RSI average indicate further weakness. Banknifty could test 43541 and further downside possible.
Approach on Technical: Indices on daily chart are seeing some kind of weakness, further consolidation seems likely in the month of August 2023.
Nifty range of this week looks like 19160 to 19674, Nifty below 19160 could indicate further weakness towards 18646. Nifty above 19674 could be considered as trend reversal as bullish. Banknifty closed below 44578 could test 43541 level this week.
Fundamental Insight
1) Bank Credit Growth to MSMEs Decelerates in June Quarter: RBI Data
2) Cabinet Approves Rs 1.39-Lakh Crore Plan For Rural Broadband
3) SBI Seeks Buyers For Its Rs 96,000 Crore Bad Loans
4) Credit Card Default Rises To Rs 4,072 Crore In FY23
Equichain Wealth Advisors: Market View & Strategy
Global cues continue to remain mix as market consolidated this week. With Q1FY24 result near to its end, we see further consolidation and correction from current level would be healthy after market rally seen since last April 2023.
We see current rally as opportunity to reduce exposure and keep exposure around 70% to 85%. After recent run-up seen in pharma stocks, some sign of fatigue seen.