For the weekend  23rd Oct'20-Friday... Updated on 18.10.20, Sunday-09.30 pm

Last week Nifty trend: Nifty Index as expected and written last week, opened with positive note at 11973.55, our expected opening band i.e, 11950-11990, it made a  high 12022 on the opening day, thereafter the mild sell-off dragged the Index till 11822, once again the Index moved up and made a weekly high at 12025.45 on Thurdsay, on the same day it was dragged down, made a weekly low at 11661.30 and closed at 11762.45 with a weekly loss by 151.75 points i.e., -1.27%. 

This week Nifty Trend: The Nifty index may open on Monday i.e., 19th Oct'20, on positive bias, subject to the Asian market move, to test 11795-11820, if open and sustain above 11820 then, the Index may try to re-visit 11870-11905-11945-11990-12025-12070-12125-12150 levels. On the other hand, the immediate support lies at 11745-11705 any further weakness below 11705 then, the Index may test 11660-11620-11560-11450-11305 levels.

Key Events: This week, no major key events are expected on the Global front and domestic front too, only the Q2 (Jul-Sep'20) India Inc. quarterly results, the resuls season kick started by the IT conglomerate i.e., TCS followed by Wipro, Infosys & HCL declared their Q2 results, the numbers were up to the market expectation on QoQ basis, on the total of 4248 companies, as of today 61 companies already declared their Q2 results, they made a net profit above 41.40% when compared with the Q1 net profit on QoQ basis and YoY basis it was above 15.10%, compared with the same period last year i.e., Sep'19, it is very early to comment and conclude on the performance, we should wait and watch the remaining corporate companies results. The Supreme court further hearing on the Interest on Interest waiver case, postponed to 02nd Nov'20, since the SC asked to file a detailed plan about this issue and directed the Union Government to implement by pass on the benefit and waive the compoud interest levied during March to Sep'20. The price valuation i.e,, Price Earnings ratio-PE, last week once again moved up and peaked to the all time high at 34.87 times and settled in 34.13 times as of Friday. 

Special Mention: Last week, the Nifty Index unable to suprass above the threshold level i.e.,12k mark, though it was tried twice at 12022 & 12025 both the time the sell-off dragged the Index to the lower levels, the long awaited profit booking cum sell-off dragged till 11660, the Nifty Index unable to close above 11795, now should watch this level to break, further it must close above 11795 levels this week, then only the Index may try to re-test 12k mark, if moves above 12025, then it may try to test 12075-12150-12250 levels by October'20. At the same time any weakness below 11660-11620 levels, may drag the Index till 11550-11300 levels very soon. Let see, how it opens tomorrow and sustain above 11795 levels. It looks the Nifty Index may try to take support 11620 on the lower side, may try to revisit 11970-12075 once again by this week. 

Sector wise performance: Last week, almost all the major sectoral Indices were traded on the neagtive bias and closed in red: The Nifty Auto lead the weekly loss by -2.50% followed by, Nifty Pharma lost -1.91%, Nifty IT lost -1.37%, Nifty Bnak lost -1.31%, Nifty Energy lost -1.22, finally Nifty FMCG and Nifty Realty closed with negative note marginally by -0.84 & -0.16% respectively. Only one sector alone i.e, Nifty metal closed with positive note and gained by 3.05%. Nifty mid cap index closed with weekly loss i.e, -1.79% & Nifty small cap index closed with neagtive note by 0.64%.

Institutional Investors trading data: The Foreign Institutional Investors-FII's last week continued as a net buyer in the Equity segment,  they bought to the tune of Rs.1185.51crores on the net basis whereas, the Domestic Institutional Investors-DII's, continued as a net seller, they sold all the days during last week, to the tune of Rs.5217.52 crores on the net basis, as per the data forwarded to the SEBI, the FIIs continued the inflow in to the Indian equity market, looks they may continue the inflow for some more time, we should wait and watch, how they behave coming week.

USD Vs INR: The USD Vs INR appreciated from the weekly low level i.e.,$72.97 and moved up till $73.52, closed on Friday at $73.44, further appreciation is depends on breaking above $73.52-73.71 on the higher side, it looks this week it may test $73.71 levels any further up move above $73.71 then, it may test $73.83-73.92-74.04-74.44. On the other hand, the support lies at $73.28, below this level, it may try to test $73.12-72.95-72.71.

Tading Strategy: The Investor/trader, those who invested during recent sell-off when the Nifty inded traded at 11660 continue to book profit, if the Nifty index not moves above 11900-12070 levels and start to re-invest i.e, adopt Buy on dips strategy, if Nifty Index test 11600-11300 levels, to trade for short term gains, rather to wait for the long term basis.

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Wishing you for a safe and secured with profitable trading.