Saturday, October 24, 2020

Stock Market | Nifty , BankNifty Outlook | Weekly (26-30 Oct) Full Outlook


 Nifty and BankNifty, Stock Market Outlook (  26-30) October 2020 

Nifty: 11930 + 34
 BankNifty: 24478  -6

Stock Market Updates

In a volatile trade, Indian equity benchmarks traded in green terrain throughout the session and ended with marginal gains on Friday, driven by gains in Auto, Consumer Discretionary, Consumer Durables and Power stocks amid positive cues from global markets. 

➤ Traders found some solace with NITI Aayog Vice Chairman Rajiv Kumar’s statement that the Indian economy might end up with a lower contraction in the current fiscal than projected by various organizations and also stressed that the next stimulus should focus on short-gestation infrastructure projects. 

➤ Some optimism also came with Niti Aayog Vice Chairman Rajiv Kumar expressed confidence that money and resources will be in place for a viable and effective vaccination system to fight COVID-19, even as he said it is quite premature to talk about the cost for getting the vaccination. He also expressed hope that the corporate world will also rise up to the occasion and make the vaccination part of their CSR activity.

➤ The Reserve Bank of India (RBI) in its latest data has showed that bank credit grew by 5.66 per cent to Rs 103.44 lakh crore, while deposits increased by 10.55 per cent to Rs 143.02 lakh crore in the fortnight ended October 9. In the fortnight ended October 11, 2019, bank credit had stood at Rs 97.89 lakh crore and deposits at Rs 129.38 lakh crore.

➤ In the previous fortnight ended September 25, 2020, bank credit had grown by 5.15 per cent to Rs 102.72 lakh crore and deposits rose by 10.51 per cent to Rs 142.64 lakh crore. Central bank data showed on a year-on-year basis, non-food bank credit growth decelerated to 6 per cent in August as against 9.8 per cent in the same month last year.

➤ Growth in loans to agriculture and allied activities rose 4.9 per cent in the reporting month, as compared to a growth of 6.8 per cent in August last year. Credit growth to the services sector decelerated to 8.6 per cent from 13.3 per cent last year. Growth in advances to industry decelerated to 0.5 per cent in August 2020 from 3.9 per cent earlier. Personal loans continued to perform well, registering a growth of 10.6 per cent in August 2020 as against 15.6 per cent in August 2019.

Nifty Outlook

nifty ,

Friends , rally that started after the global pandemic effect in March 2020 can continue in the upcoming week too with high volatility and high movement in both sides . As you can see on chart that the uptrend is still intact and Nifty is not showing any sign of big correction till now. Small 100-200 points correction can occur as it is the nature of the stock market. But, overall trend will be positive and uptrend shall continue.

But one thing should be clear now that  Banknifty will outperform  in the upcoming week than Nifty. So prefer BankNifty than Nifty. In the upcoming week FnO monthly expiry will also execute so expect high volatility in both direction.

As result season also started so volatility can be seen in the market . So in any volatility when market fall then we should prefer taking long position in the market rather than doing panic. Both up and down levels can be seen in the market.

➤ In Nifty 12027 will be the resistance in upside and 11656 will be the support in downside for the week. But overall tendency of the market may be positive , so prefer long position in any small correction.

BankNifty Outlook

banknifty ,

➤ Friends , high volatility in both direction can be seen in upcoming week. Banknifty will be more stronger than Nifty in the upcoming week and in the upcoming week overall trend of the Banknifty will be positive. So in dip or small correction we should consider it for making long position.

➤  In the upcoming week Banknifty can test 25198 level in upside and this will be also a resistance in the upside. In downside 23751 is a strong support for BankNifty. But overall trend of the Banknifty will be positive , so try to make long position and avoid to take short position.

Thanks for your Precious Time.

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Disclaimer- The information on this blog are based on my personal opinion and experience, it should not be considered professional financial investment advice and in no way it should be considered as a tip. We does not take any compensation of any kind whatsoever from any reader, user and company that are mention on this website. We are not SEBI registered financial advisor or analyst.

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