For the weekend 05th Feb'21-Friday... Updated on 01.02.21, Monday-6.03 am

Last week Nifty trend: Nifty Index as expected and written last week, opened on flat to positive note at 14477.80, our expected opening band i.e., 14385-14410-14440, made high 14491.10 on the opening day i.e., Monday, thereafter, the Index moved down throughout the week till 29th Jan, made weekly low 13596.75 on Friday and closed the week at 13634.60 on negative note with weekly loss by -737.30 points i.e., -5.13%. 

This week Nifty Trend: The Nifty index may open on Monday i.e., 01st Feb'21, on flat to positive note, subject to the Asian market move, near 13685-13710-13735, if open and sustain above 13735 then, the Index may try to re-test 13860-13970-14040-14220-14320-14410-14490-14550-14620 levels. On the other hand, the immediate support lies 13575-13320 levels, any further down move below 13320 then, the Index may re-visit 13280-13140-12955-12760-12530 levels.

Key Events: No major key events are expected coming week, on the global front, on the domestic front, the much awaited Indian Union Budget is expected today and RBI policy meet is scheduled on 05th Feb-Friday, further the India Inc. remaining corporate companies quarterly results for the Q3 (Oct-Dec'20 quarter) are awaited, so far, as of 30th Jan, 609 companies announced their Q3 numbers, the Q-o-Q basis net profit moved up over 9.50% when compares to the last quarter. On Y-o-Y basis, it was seen with robust growth about 110.30%, 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 outcome of Union Budget, especially disinvestment plan with target for the coming year, the Q3 numbers of the remaining corporates and FIIs Funds out flow are the trend deciders for the market direction in the near term, price valuation i.e,, Price Earnings ratio-PE, last week has come down from the unprecedented level i.e., 40.03 times and settled at 36.57 times on Friday. 

Special Mention: Last week, after  the SENSEX, made a sensational and historical all time high record i.e, 50k mark, the sell-off started, the FIIs turned as a net seller everyday last week, hence the  Nifty Index re-visited our first threshold support level 13770 and closed the second straight week with negative bias well below 13770, if the Index closes below 13770 this week, then it may test 13130-12765-12500-12000 levels in ensuing weeks. On the other hand if, the Nifty Index regain and close above 14040 for three consecutive trading sessions with weekly close, then it may try to re-test 14420-14620-14750 levels in the near term. It looks, the volatility may rule the Index this week also, due to the Union Budget and RBI Policy meet.

Sector wise performance: Last week, all the major sectoral Indices were traded with the negative note and closed in red, lead by Nifty IT lost -6.96%, followed by Nifty auto lost -6.68%, Nifty Energy lost -6.38%, Nifty Realty lost -4.60%, Nifty  FMCG lost -3.80%, Nifty Financial Services lost -3.62%, Nifty  Pharma lost -2.96% and Nifty Bank lost -1.93%.  On the other hand, Nifty Midcap Index closed on negative note with weekly loss by -3.46% and Nifty Smallcap Index closed with a weekly loss by -2.33%. 

Institutional Investors trading data: The Foreign Institutional Investors-FII's last week turned as a net seller in the Equity segment, they sold to the tune of Rs.12096.69 crore on the net basis; whereas, the Domestic Institutional Investors-DII's, turned as a net buyer, they bought, to the tune of Rs.3788.98 crore on the net basis, as per the data forwarded to the SEBI,. We must watch the FIIs behaviour this week, whether they continue the profit booking or not.

USD Vs INR: The USD Vs INR depreciated from the weekly high level i.e.,$73.18 and moved down till $72.78, closed on Friday at $72.92, the USD Vs INR as written & expected last week, taken support at our support level i..e, $72.80, made a weekly low at $72.78, this week the move is depends on breaking above $73.18-73.32 on the upper side then, it may test $73.61-73.74-73.86-74.12-74.31. Likewise, on the down side the USD Vs.INR may try to take support at $72.78-72.71, if moves further below $72.71, may re-visit $72.67-72.59-72.46-72.34-72.21-72.04 levels in the near term. 

Tading Strategy: The Investor/trader, those who booked profit recnetly at 14750 levels, start to re-invest in Nifty 50 stocks with short to medium term perspective, when the Nifty Index trades near 13575-13250-13000 i.e, adopt Buy on dips strategy to gain 5-10% return on the investment.

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Wishing you for a safe and secured with profitable trading.