Trading Strategy- Nifty, Bank Nifty for (13 -17 Sept 2021)
Trading Strategy for Nifty | Bank Nifty for the week – 13 – 17 Sept 2021: Indian stock markets closed slightly higher whereas the broader markets outperformed the benchmark during the week ended 9 Sept 2021. The domestic equity markets started the week on optimistic notes and later traded in a lackluster way. The Indian markets made a positive move on Monday due to the previous weekend news that the US fed may delay the asset tapering as there is a slowdown in the US employment data. However, markets traded almost flat for the rest of the day of the truncated week.
Factors that may impact the Indian stock markets and the trading strategy for the Nifty and Bank Nifty for the next week (13 Sept- 17 Sept 2021) are given below
Macroeconomic data
India’s retail CPI-based inflation rate for the month of August is expected on Monday post-market hour. The country’s retail CPI inflation was eased to 5.59 percent YoY on July 21, from 6.26 percent in the previous month. The July inflation rate was below the market expectation of 5.78 percent in the last month. The August inflation is expected to fall slightly as food prices have declined. The other macroeconomic data that are expected in the next week are given below.
| Economic Data Next Week | |
| 13 Sept | Inflation rate |
| 14 Sept | WPI |
| 15 Sept | Balance of Trade Export/Import |
| 17 Sept | Foreign Exchange Reserve |
Global market cues
Last week the global markets closed mixed, the US and European markets declined whereas the major Asian markets closed higher. There is uncertainty about Fed’s asset tapering whereas ECB has decided to slow down the bond purchasing program. The investors are concerned about the surges of delta variants of coronavirus infection were slowing down the economic rebound.
The global market sentiments may remain negative next week but again the macroeconomic data like inflation, industrial production, trade data can turn the market sentiments positive. Below are the major global macroeconomic data expected next week.
| Important Global Macro Data Next Week | ||
| 13 Sept | Consumer Inflation Expectation Aug | US |
| 14 Sept | Industrial Production MOM Jul | Japan |
| 14 Sept | Unemployment rate | GB |
| 14 Sept | Core Inflation Rate | US |
| 15 Sept | Industrial Production | China |
| 15 Sept | Retail Sales/ Unemployment | China |
| 15 Sept | Core Inflation Rate for AUG | GB |
| 15 Sept | Retail Price Index for Aug | GB |
| 15 Sept | Industrial Production | US |
| 16 Sept | Balance of Trade Export/Import | Japan |
| 16 Sept | Retail Sales/ Initial Jobless Claim | US |
| 17 Sept | Retail Sales Aug | GB |
| 17 Sept | Michigan Consumer Expectation | US |
| 17 Sept | Michigan Inflation Expectation | US |
Trading strategy for Nifty & Bank Nifty for the week – 13 – 17 Sept 2021
Trading Strategy Nifty Futures for the next week- 13- 17 Sept 2021
Primary Trend of NSE Nifty index futures for next week: Range-Bound
Range-Bound Trend of Nifty futures: All up Moves Initiates Profit Booking (Sale) @ 17420 whereas All Down Moves Initiates Short Covering (Buy) @ 17250
Suppose Nifty share price in futures Moves Above 17408 and sustain. Then you should Buy Nifty futures with 1st Target of 17432 during the day or week with a Stop Loss of 17338 FOR the Target of 17432- 17458- 17494- 17529
Suppose Nifty share price in futures Moves Below 17338 and sustain. Then you should Sell with the 1st Target of 17297 during the day or week with a Stop Loss of 17408. FOR the Target of 17297- 17275- 17239 -17203
Bank Nifty Futures trend for the week – 6 Sept- 9 Sept 2021
Primary Trend of Bank Nifty index future for the week: Mild-Negative
Range-Bound Trend of Bank Nifty share price in future: All up Moves Initiates Profit Booking (Sale) @ 36950, whereas All Down Moves Initiates Short Covering (Buy) @ 36500
Suppose the Bank Nifty share price in the futures Moves Above 36865 and sustains. Then you should Buy Bank Nifty futures with the 1st Target of 36935 during the day or week with a Stop Loss of 36620. FOR the Target of 36935 – 37020- 37110- 37260
If Bank Nifty shares price in the future Moves Below 36620 and sustained. Then you should Sell with the 1st Target of 36552 during the day or week with a Stop Loss of 36865. FOR the Target of 36552- 36470- 36320 – 36170
FII & DIIs investment in Indian stock markets
Foreign Institutional Investors (FIIs) were the seller and the Domestic Institutional Investors (DIIs) were the buyers in the cash market segments for the week ended 9 Sept. FIIs sold Rs 1113.88 crores while DIIs bought Rs 1115.55 crore in the cash market on a weekly basis.
In the previous week Foreign Institutional Investors (FIIs) were buyers, and the last week they turned sellers. The inflow from FIIs has become uncertain in the month of September. FIIs strong selling means correction in the Indian equity markets, traders need to track the FIIs inflow in the coming week to know the trend.
Coronavirus risk & Vaccination
India reported 33,376 fresh covid cases and 308 deaths on 11 September according to the health ministry. Active cases constitute 1.18 percent of total cases while the national Covid-19 recovery rate stands at 97.49 percent. Kerala added 25010 cases and 177 deaths. Kerala itself contributing 70 percent of India’s fresh covid cases. In India, there is a decline in fresh covid cases but in Western and some Asian countries it is still surging and slowing down the economic growth.
On the vaccination front, India has administered more than 73 crore Covid vaccines till 11 Sept 2021. PM Modi on Friday held a high-level meeting to take stock of the present Covid-19 situation and the status of vaccination ahead of the festive season. Due to the acceleration of the vaccination program, the Covid-19 situation is under control with the weekly positivity rate coming to 2.31 percent this is positive news for the markets.
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