Nifty

SGX Nifty gains in trade: Trends in SGX Nifty suggested a positive start for Sensex and Nifty on Tuesday.

Index Outlook: How far can Nifty 50, Sensex, Nifty Bank and Dow Jones fall?

Sensex, Nifty 50 and the Nifty Bank indices oscillated up and down within a range the whole of last week.

The highlighting point is that the Nifty midcap index is just 2% away from its all-time high whereas the Nifty small cap index is still 18% away.

The SGX Nifty hinted that domestic indices Nifty 50 and Sensex will see a muted start on the bourses.

The SGX Nifty lost 0.37% in trade on Thursday morning, signaling that domestic indices NSE Nifty 50 and BSE Sensex would open on a negative basis, continuing to extend losses after snapping a four-day winning streak on Wednesday.

Where are the supports for the Nifty and Nifty Bank?

Similar to what happened with Nifty futures, there was a fresh short build-up on Bank Nifty futures as the price decline was accompanied by an increase in cumulative OI.

From the peak, the headline index NIFTY came off nearly 35%; if we look from the financial year perspective, this financial year has seen the NIFTY returning a negative return of 21%.

However, there is another index, though very volatile, some investors have taken to — NSE’s Nifty Next 50 or Nifty Junior.

In the Bank Nifty, our advice is to be bearish, if Bank Nifty trades below 28500 level otherwise can crate a long position by keeping same stoploss.

Markets witnessed a sharp selloff throughout the week with Nifty & Bank Nifty index forming a bearish Engulfing & bearish Dark cloud cover candlestick pattern on the weekly chart.

Markets witnessed the highest weekly close since March 2020 as across the board buying frenzy weighted in. Nifty and Bank Nifty closed the week ~1.75% and ~3% higher, respectively, with major banking heavyweights making a comeback.

Nifty and Bank Nifty index closed at intraday highs, gaining ~2% as major heavyweights like Reliance Industries & HDFC Bank were among the top gainers.

On the options front (October 29, 2020 expiry), across the board writing was seen in both call and put option strikes as the Nifty and Bank Nifty index traded in a narrow trading band.

SGX Nifty was trading over 70 points higher on Monday morning, signalling a gap-up start for NSE Nifty 50.

The Nifty PSU bank index dropped 1.4 per cent and Nifty private bank index slid 0.4 per cent.

For example if we see historic valuations of stocks like etc. than historically the have traded at more than twice the multiple of Nifty in good markets and at least 1.5 times the Nifty valuations in bad markets in last 20 years.

The fund invests in a basket of Nifty 100 index stocks and aims to achieve returns of the Nifty 100 index but subject to tracking error.

This is despite the fact that Nifty earnings have not risen much in the last four years while Nifty has risen 35-40 per cent,” said Deepak Jasani, Head of Retail Research at HDFC Securities.