For the weekend 22nd Jan'21-Friday... Updated on 17.01.21, Sunday-9.00 pm

Last week Nifty trend: Nifty Index as expected and written last week, opened on positive note at 14474.05, our expected opening band i.e., 14365-14405-14420, made a low 14383.10 on the opening day i.e., Monday, thereafter, the Index moved up till 13th Jan, made a weekly high 14653.35, further the profit booking dragged till 14357.85 on Friday and closed the week at 14433.70 on positive note with weekly gain by 86.45 points i.e., 0.60%. 

This week Nifty Trend: The Nifty index may open on Monday i.e., 18th Jan'20, on flat to positive note, subject to the Asian market move, near 14470-14510, if open and sustain above 14510 then, the Index may try to test 14565-14610-14650-14690-14735-14800-14890 levels. On the other hand, the immediate support lies 14420-14355 levels, any further down move below 14355 then, the Index may re-test 14290-14260-14210-14140-14040-13980-13940-13890 levels.

Key Events: No major key events are expected coming week, on the global front, as well as on the domestic front, except the India Inc. remaining corporate companies quarterly results for the Q3 (Oct-Dec'20 quarter) so far, as of 16th Jan, 60 companies announced their Q3 numbers, the Q-o-Q basis net profit moved up over 25.60% when compares to the last quarter, on Y-o-Y basis, it was seen at 26.20%, when compares with the same period last year Dec'19, we should wait and watch the remaining corporate companies results, in the ensuing days. The Q3 numbers of the remaining corporates and FIIs fund flows are the trend deciders for the market direction in the near term, price valuation i.e,, Price Earnings ratio-PE, last week has peaked once again to unprecedented level i.e., 40.03 times and settled at 39.34 times on Friday. 

Special Mention: Last week, the Nifty Index successfully moved till 14653.35, but the brief technical sell-off cum profit booking drgged the Index till 14357.85 and closed well above 14400-14310, though it looks some weakness in the Nifty Index movement, the reversal is yet to confirm, it may be confirmed this week, if the Index closes below 14430-14400 for three cosecutive trading sessions, then the Index may re-test 14330-14210-14040. On the other hand if, the Nifty Index sustain and closes above 14570-14650 for three conesecutive trading sessions then, the Index may test 14735-14890-15035 levels in the near term. It looks, the Sensex may test 50k mark, just 250 points away for this level since, it already tested 49795 and Nifty Index also may test 14750-14890 levels, it may happen before the Union Budget, which is scheduled on 1st Feb'21.

Sector wise performance: Last week, all the major sectoral Indices were traded on the positive bias and closed in green, except the Nifty Metal, Nifty Pharma & Nifty Financial Services. The Nifty Auto lead the weekly gain by 4.49%, followed by Nifty Realty gained 1.15%, Nifty FMCG gained 1.03%, Nifty IT gained 0.77%, Nifty Bank gained 0.51%, Nifty Energy gained 0.50%. At the same time, Nifty Metal lost -2.27%, Nifty Pharma lost -1.94% and Nifty Financial Services marginally lost -0.37%. On the other hand, Nifty Midcap Index closed on negative note with weekly loss by -1.17% and Nifty Smallcap Index closed with a weekly loss by -0.56%. 

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.7636.06 crores 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.7444.97 crores on the net basis, as per the data forwarded to the SEBI, the FIIs continued the inflow to the Indian equity market, all the days in last week, we should wait and watch, how they behave coming week.

USD Vs INR: The USD Vs INR depreciated from the weekly high level i.e.,$73.63 and moved up till $72.92, closed on Friday at $73.15, the USD Vs INR as written & expected last week, moved down from our resistance level i..e, $72.63-73.94, made a weekly high exactly at $73.63,  this week the move is depends on breaking above $73.74-73.86 on the upper side then, it may test $73.96-74.09-74.13-74.19-74.32. Likewise, on the down side the USD Vs.INR may try to take support at $72.97-72.80, if moves further below $72.80, may re-visit $72.71-72.59-72.46-72.34-72.21 levels in the near term. 

Tading Strategy: The Investor/trader, those who Invested at 13150 levels, try to book full profit 14650-14750-14890 levels if not moves above these levels and wait for further crorrection, to re-invest i.e, adopt Buy on dips strategy, if Nifty Index test 14000-13770 levels, to trade for a short term gains with medium term perspective, rather to wait for the long term basis.

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Wishing you for a safe and secured with profitable trading.