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Nifty - "Corporate Results" vs "COVID19 New Variants"

Only 8 trading sessions are left in July month expiry. Corporate results are the only local event, which can force Nifty to cross 16000 with good volumes.

HDFC bank results have already declared last week, announced 16% hike, (below expectation, usually it should be 20% approximately). The Bank's profit jumped from Rs 6,660 crore to Rs 7730 crore on a year-on-year basis.

We need to watch how the market reacts on Monday. If it takes positive, the expectation from other bank results would be higher, and Nifty Bank could cross 36000. But if it is taken in a negative then we can see the downside or sideways trend.

If we see one hour chart of Nifty, one can easily see, it is too much confusing. The absence of trend and momentum along with low India VIX shows that the index is not tradable at least for novice traders. Professionals trades can earn through quick scalping only.

The overall trend is still bullish, but with the missing momentum.

With increasing cases of new variants of COVID19, Global Clues are not very good. The same is reflecting in our country also.

Nifty Bank is trying to cross 36000, and Nifty is trying to cross 16000, and both are failed to do so again and again.

The only hope in July expiry is corporate results, which can boost the market and pave the way to show the trend either way.

In the coming week, the Nifty levels of upside 16000 to 16190 are still intact. The support will come from 15850 to 15600

The nifty bank also waiting to cross 36000, so the upside levels are still valid above 36000 to 36500. And support can come from 35400, but if it could not sustains the next support level would be 34400 levels for this week.

We still recommend sticking to stocks and sectors with strong Relative Strength against the broader markets and continue to adopt a mindful and alert approach while following the current trend over the coming days.

For Options traders, keep your positions hedge. This is not the time for options sellers due to low VIX, this is the time for options buyers, but before taking any position, wait for a suitable trend, either side and do not take any trade against the trend, else this will eat your premium values very fast.

Thanks for reading.

Happy Trading

Keep Investing


Neeraj Bhatia

Managing Director

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