Nifty outlook: The Nifty 50 index has seen a boom on the last two trading days of last week. Its real test will now be on Monday, October 6. This week, big IPO is also dominated. Also, the season of the second quarter results has also begun. Investors will also keep an eye on both these factor.
Although on Friday, Nifty traded in a range of only 150 points, the good news for the bulls is that the index shut down the highest level at the end of the day. The speed at the end of the session indicated that buyers remain interested.
Big IPOS pressure
The next week is quite important for Nifty. This two -day boom will now be tested when two big IPOs of the year will open for subscription simultaneously. These include Tata Capital IPO of ₹ 15,500 crore and LG Electronics India IPO of ₹ 11,607 crore. Apart from this, the IPO of WWORK India has also been open since Friday.
On Tuesday, these three IPOs will be open for subscription simultaneously. This day will be the last for the wear, the first for LG and the second day for Tata Capital. Overall, the issue of ₹ 30,000 crore will try to woo investors.
TCS results
Even after these IPOs, the issue is in the pipeline, but Thursday will not be the last day of LG IPO. The results of the second quarter of India’s largest IT company TCS will also come on this day. TCS was in the discussion due to visa related issues and satirs of employees in this quarter.
In Friday trading, the Nifty IT index played the lead role in recovery. This means that the growth of IT shares pulled the Nifty up.
Technical level of Nifty
The Nifty is now close to 24,900, which was also crossed in Intrade. The further important upside level is 25,017. This is a 50% retracement of the fall of September 18 to the low 25,448 to 30 September decline from 24,587.
The next level above it comes to 25,113 on 61.2% retracement. Investors should monitor these levels, as they can decide the next move.
Nifty Bank performance
The Nifty Bank has shown an increase for four consecutive days, especially after the announcement of RBI policies on Monday. Almost all the members of the index have given business updates to their quarters. This includes HDFC Bank, Kotak Mahindra Bank and other PSU Banks. These updates will also affect the index on Monday.
Talking about the levels, the Nifty Bank has almost achieved the entire decline from the highest 55,835 to 29 September low of 54,226 of September 18. Hence the next important upside level for the banking index is 55,835. 55,300 and 55,000 strong support will be done in DownSide.
Expert opinion on Nifty
Rajesh Bhosle of Angel One is constantly advising traders to take advantage of the decline in Nifty and keep shopping. Nifty is immediately supported at 24,730, followed by strong support at 24,600. The 50% and 61.2% reported earlier will work as resistance for the retracement level index. The index over these levels can re -test its recent swing high 25,450.
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According to Ajit Mishra of Railways Broking, ‘The index has closed its immediate resistance close to 24,900, which matches the level of 20-DEMA. If the index moves above this level continuously, recovery can increase to 25,150, after which the big resistance will come at 25,400. Tatkal support in downside is in zone of 24,600–24,750, while strong support will be seen at around 24,600.
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