Phew, what a week!! Nifty 50 shatters the previous week’s losses and rose 2%, making a new high at 25,433 levels. Let us have a glance at the Nifty 50 technical outlook this week!
Nifty’s impressive rally carried on, with the index closing the week on a strong note, buoyed by growing excitement ahead of next week’s anticipated rate cut.
The Fed is widely expected to lower the Federal Funds rate from its current 23-year high when the meeting wraps up on September 18.
The only debate left is whether the cut will be 25 basis points (0.25%) or 50 basis points (0.50%), as recent inflation and jobs data fuel market expectations.
According to the CME Group’s FedWatch Tool, futures traders are assigning a 53% probability of a 0.25% cut and a 47% chance for a 0.50% reduction.
In the midst of this optimism, Wall Street has also posted strong gains. The S&P 500 and Nasdaq enjoyed their best week of 2024. The Dow climbed 2.6%, while the Nasdaq soared 5.93%. The S&P 500 registered a 4% weekly gain.
Let us have a look at the Nifty 50 technical outlook and technical view on different sectors-
Nifty 50 Technical Outlook
Nifty’s impressive rally carried on, with the index closing the week on a strong note, buoyed by growing excitement ahead of next week’s anticipated rate cut.
However, the momentum is not so strong, as a bearish divergence can be seen on the daily charts of Nifty 50!!
Expect the Nifty 50 to trade between 25,000 and 26,000, as both these levels have the maximum puts and calls.
Let’s come to Bank Nifty, the hero of the week!!
Bank Nifty Technical Outlook
Bank Nifty broke the resistance of 51,700 this week and made a doji in the daily charts, indicating a continuation of the uptrend!! So, yes, Bank Nifty is finally up!
So, what about other sectors?
In broader markets, the Nifty Mid-cap 100 index slipped 2.83% higher while the Nifty Small-cap index inched 1.19% higher.
Bearish Sectors:
- Nifty PSE Index (-1.28%)
- Nifty Oil & Gas Index (-2.61%)
Bullish Sectors:
- Nifty FMCG (+2.99%)
- Nifty Media (+2.84%)
- Nifty IT (+2.76%)
- Nifty Metal (+2.29%)
- Nifty Reality (+2.09%)
- Nifty Pharma (+1.8%)
- Nifty Infra Index (+1.63%)
- Nifty Auto (+1.15%)
Stocks to Look for Next Week
Here are some stocks that you should keep on your radar-
Linde India Ltd. looks good in the technical charts. A breakout above 8,320 will confirm its upward momentum to 9700.
Financials are the Superstars of this week!! L&T Finance looks superb for the levels of 190!
Another financial stock on the radar is Aptus Value Housing Finance!! Watch for the levels of 370, as it crosses the 340 mark!
The Conclusion
Expect the market to be volatile this week as the Fed Meeting commences next Wednesday. The Housing Financial companies are expected to move up after the Fed rate cut!
P.S.- This blog is only for knowledge purposes!! Do your research!!
Happy Trading!!
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