Our market has shown a remarkable resilience in the last week by defying the weak global trends particularly from US and China. Even though, Rupee fell below its lifetime low levels on downgrading of rating by S&P, equity market was not affected much. Weak GDP numbers also had a limited impact on our market as the lower GDP numbers coupled with multi-month low inflation raised fresh hopes of interest rate cuts by RBI.
Duty cuts by the Central Government, rate cut hopes and better than expected results from Tata Steel saved the market from the above said negative factors. Further, there was a good amount of short covering ahead of F&O expiry due for the last week helping the key indices to post modest gains. At the same time, sell-off continued in the small and midcap segments and the overall breadth of the market was negative.
As we mentioned earlier, 2700 levels for Nifty proved to be a strong support for the market. Auto stocks were the major gainers due to the rate cut hopes and launch of Nano Car. IT stocks also gained for the week, because of the Rupee fall. Realty sector continued its downtrend. Banking stocks also fell significantly during the majority part of the week though they covered a part of their losses on the last day of the week on rate cut hopes.
Week Ahead:
Falling inflation and the pressures on the Central Government to do something before the elections may prompt a rate cut by RBI in the week ahead. Rate cut may help interest rate sensitive stocks. Reliance Industries – RPL merger may benefit RIL shareholders and the RPL shareholders may be hit. Further, raising trend in Crude Oil may help, Oil producers and Oil Refineries. At the same time, Special Audit on NIFTY Companies announced by SEBI may have some negative surprises.
To conclude, there are equally strong positive and negative news flows to the market and it may continue to move in a narrow range. It appears that there has been a lot of action in F&O segment at the Nifty levels 2700 and 2800. 2700 levels for Nifty continues to be a strong support and a firm breach, if any, would lead to a massive sell off. Similarly, 2800 points will give stiff resistance to the Nifty and in case it breaks 2830 levels, there will be a rush for short covering, taking the market further up towards 2900.
Happy week ahead.
7 years ago
4 comments:
thanks sumathi ... forgive me for asking this, is it not possible to water down the teck speech for us interested but ignorant common persons of our ilk.
Thanks for the comments Benzaloy.
I will try to present simpler in the next blog.
That's good Sir, please tell us if you need our feedback modified in any particular manner.
Thanks for the quick response.
Actually i replied on the same day of your comment. But, unfortunately, i did not notice it not getting published.
Then, you can send your feedback in your own comfortable manner.
I thought earlier, I would present the economy and market happenings in Tamil in simple manner as many people who are not in market follow that blog "Sandhai Nilavaram". This blog (Maximum India) was followed earlier only by technical people from stock markets. That's why I did not bother much to put it simple. Now, I understand that few of the general public are also following this blog. So, I will try to present in a simpler way from next post.
Thank you for the feed back.
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