What a week for Nifty 50! Nifty 50 surged from the 24,300 level, crossed 24,500, which is an important psychological level, and ended the week at 24,800.
The other index, Bank Nifty, however, was not able to cross the 51,000 mark. It underperformed the Nifty 50 and closed with a gain of 0.82% this week.
From the above weekly chart, we can see how Bank Nifty is performing compared to Nifty 50. It is clear that the Bank Nifty has been underperforming the index since the beginning of 2024.
For the Nifty 50 to achieve new highs, support from the Bank Nifty is essential.
So, will the Bank Nifty surge higher next week?
This question has now become one for the millennium!
Sectors in the Spotlight This Week
The week of August 19-23, 2024, saw several sectors in the spotlight-
1. Information Technology (IT): The IT sector has continued its strong performance, driven by robust demand for digital services and strong earnings reports from major players. Companies like TCS, Infosys, and HCL Technologies have been leading the charge.
2. Banking and Financial Services: The banking sector has been gaining traction, with banks benefiting from a growing economy and improving asset quality. HDFC Bank, ICICI Bank, and SBI have been among the top performers.
3. Pharmaceuticals: The pharmaceutical sector has seen a resurgence, fueled by increased demand for healthcare products and government initiatives to boost the sector. Cipla, Dr. Reddy’s Laboratories, and Sun Pharmaceuticals have been notable contributors.
4. Consumer Durables: The consumer durables sector has been experiencing a surge, driven by rising disposable incomes and increased consumer spending. Companies like Titan, Bajaj Electricals, and Whirlpool India have been in focus.
5. Metals and Mining: The metals and mining sector has been volatile, with prices of commodities like iron ore and copper fluctuating. Tata Steel, Vedanta, and Hindalco have been closely watched.
6. Auto and Auto Ancillaries: The auto sector has shown signs of recovery, with strong sales of passenger vehicles and commercial vehicles. Maruti Suzuki, Tata Motors, and Ashok Leyland have been key players.
7. Oil and Gas: The oil and gas sector has been impacted by global geopolitical tensions and fluctuating crude oil prices. Reliance Industries and ONGC have been closely monitored.
8. Infrastructure: The infrastructure sector has been gaining momentum, driven by government initiatives and increased investment in projects. Larsen & Toubro, Bharti Airtel, and Power Grid Corporation have been in the spotlight.
9. Telecom: The telecom sector has been consolidating, with Reliance Jio making significant strides in expanding its market share. Bharti Airtel and Vodafone Idea have also been active.
10. Energy: The energy sector has been witnessing a mix of trends, with renewable energy companies gaining traction while traditional energy players facing challenges. NTPC, Suzlon Energy, and Tata Power have been notable names.
Stocks to Keep an Eye On Next Week
Here are some stocks that one can keep an eye on next week-
Nykaa- This week, Nykaa surged by 17% with huge volume! Yes, you heard that right apparently! The next resistance for this stock is 250 levels. Once this level is crossed, expect it to reach 300 levels.
Himadri Specialty Chemicals- This chemical stock closed this week with a gain of 13.4% ! One can expect it to rise to 680-700 levels.
Interglobe Aviation Ltd. is Flying High! With the sale season ending and the holiday season coming, this stock can expect to fly to 5,200!
Note- Trent Ltd and state-owned Bharat Electronics Ltd will be included in the NSE’s benchmark index Nifty 50 from September 30; while drug firm Divi’s Laboratories and technology services provider LTI Mindtree will be dropped from the Nifty 50 index.
This was all about the stocks! Let us discuss the Index levels to watch next week!
Levels To Watch Next Week
Keep an eye on Nifty and Bank Nifty levels for the upcoming week-
Nifty 50- 24,500 as support and 25,500 as resistance.
Bank Nifty-50,800 as support and 51,500 as resistance.
Keep an eye on these levels, and best of luck with your trading next week!
P.S- This post is for educational purpose only and no stock recommendations!
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