Nifty Outlook: In the last 15 trading sessions, Nifty 50 has shown a tremendous rise of 1,500 points. It rose from a low of 24,587 on September 30 to a high of 26,104 last Thursday. But after such a sharp rise, buyer fatigue was bound to be visible at higher levels. This is why the selling started from Thursday afternoon and the index fell by about 300 points from its intraday high.
There will be a big stir in the market after Diwali
Last week was short due to Diwali holidays. Now trading is expected to start in full swing from Monday. This time Nifty has to react to many big updates.
These include Kotak Mahindra Bank’s quarterly results, Ola Electric’s fundraising announcement and positive signals from the US markets. Many other quarterly results have also come after the market closed on Friday evening.
This week will be full of quarterly results
This week will be completely focused on quarterly results. More than 160 companies will present their September quarter results. These include big companies of Nifty 50 and mid-cap segment. Along with this, global events will also decide the direction of the market.
The US Federal Reserve will decide on interest rates this week. There is a possibility of another rate cut in this. At the same time, there will also be a meeting between US President Donald Trump and Chinese President Xi Jinping on Thursday. Apart from this, the market will also keep an eye on the trade deal between America and Thailand.
Results of these companies will come on Monday
The results of many big companies are going to come in Monday’s trading session. These include Adani Energy Solutions, Bata, Chennai Petro, Indus Towers, Indian Oil Corporation, JK Tyre, Kfin Tech, Mazagon Dock, PNB Housing, Sona BLW, Supreme Industries and Tata Investment.
Additionally, Coforge, Dr. Market reaction will also be seen on the results of Reddy’s, Eclerx, Latent View Analytics and SBI Cards.
Nifty Bank became the major reason for the decline
Nifty Bank Index was an important reason for the fall in Nifty from high levels. This index has fallen by about 900 points from its record high of 58,577. This week, banking stocks will also be under watch, because the reaction of the market will be seen on Monday on the results released by Kotak Bank over the weekend.
Sudeep Shah of SBI Securities says that the zone of 57,900-58,000 will act as immediate resistance for the Bank Nifty index. If the index shows strength above 58,000, the recovery may continue till 58,500. On the downside, the zone of 57,200-57,100 will be an important support for the index.
Expert opinion on Nifty
According to Sudeep Shah, based on Friday’s low of 25,718, the zone of 25,700-25,800 will be an important support for Nifty in Monday’s session. On the upside, 25,850 will be the first resistance level. After this, a congestion zone of 25,900-25,950 and a big resistance of 26,000 will emerge.
According to Nagaraj Shetty of HDFC Securities, the short term trend of Nifty is positive, but there is selling pressure in the short term. If there is further weakness, then the level of 25,600-25,500 can become an important support. This may provide an opportunity to ‘buy on dips’ for the next week. He said that the immediate resistance is at 25,950.
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Amol Athawale of Kotak Securities says that the levels of 25,700-25,550 are important support on the downside for Nifty. At the same time, on the upside, 26,100-26,150 can prove to be a big hurdle for the bulls. However, if the index slips below 25,550, sentiment may turn negative and investors may exit their long positions.
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