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Below is Weekly outlook Nifty and Banknifty by Mr. Anuj Gupta, Vice President, IIFL Securities

Last week nifty we saw a sell off in the india equity market corrected on covid concerns and end of year traditional trend. Generally we saw every year book closures by the fund housed and due to this we observed the profit booking. In our view the correction in the stock market is just a profit booking as indexes were trading on an overbought zone.

Last week the nifty corrected by 2.53% and closed at 17806 levels and Bank nifty corrected by 3.59% and closed at 41668 levels. Both the index are now in the oversold zone as the reading on RSI technical indicators. On the other hand crude oil prices and the US dollar has gone weak which is also a good sign for India and other emerging markets. This year FIIs were in net outflow and DIIs were in outflow.

We are expecting that we may see a recovery in the index next week or in the new year. Nifty has a support at 17700 and then 17500 levels. Resistance at 18200 and then 18500 levels. Bank nifty support at 41000 and then 40400 levels, resistance at 42200 and then 43000 levels. Expecting recovery in the indexes from the support levels from the next week.

USDINR
Last week the Rupee depreciated by 0.12% and closed at 82.76 levels. weakness in the equity market put pressure on the Indian rupee, however corrections in dollar curb the sharply depreciation in the rupee. As the dollar is expected to correct further we are expecting the rupee may appreciate in the coming week. Rupee may trade between 82.30 to 83 levels.

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