Mr. Mustafa Nadeem, CEO, Epic Research:
Nifty posts first weekly loss after 5 weeks of consecutive rally, profit booking along with mixed global cues were amongst few reasons that halted the advance. Bank Nifty was amongst the winners for the week as a sector where we have witnessed strong coming in and it continued the same by holding on to the momentum as closed above 26500.
Nifty continued the momentum with the week starting though profit booking ahead of FOMC meets kept investors jittery over the overall momentum. The breadth which was seen exhaustive came in with bank Nifty supporting the index and gaining almost 3 percent from 24900 to 25600. With that, we saw some profit booking in Nifty and other indices such as metals, IT and FMCG while Banking stocks, specifically, private banks were leaders as bank Nifty held its support level of 25500.
There are a few numbers of results that will be coming up in next weeks. Amongst the major eyes will be crucially on ICICI Bank and its performance since Axis has been a disappointment due to its higher losses on the back of accounting of higher provisions. Titan, Ujjivan, Apollo Tyre and Canara Bank will also be lined up with their result. It will be important to note the movement on Monday since we have fed speech post the interest rate being kept aside for a while. The importance will be of the context that will either be hawkish or dovish and labor market sentiments which has been fairly well in the last couple of quarters and is expected to remain in 220 - 230K range. The Iran and US comments on the recent event will also be eyed since any price propel in crude prices can give jitters to Indian markets in a direct way.
The overall derivative cues suggest the range play to continue in markets for coming week as we have seen some writing at 10800 CE while on the lower side we have seen highest OI at 10400 - 10500. The current momentum may see some downside support around these levels. The upside seems to be capped at 10800. Bank Nifty may further lead the momentum with next resistance at 25850 - 26100. These levels may see some profit booking as multiple confluences are there.
The overall market has also discounted the recent fundamentals related to the economy like weather forecast and GDP. It will be important to see IIP number and Mfg Number which was 7.1% and 8.7% respectively. We may continue to see stock specific action in the coming week and specific focus on capital goods and infrastructure and manufacturing stocks.