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| Market Update Nifty 50 chart |
Market Update: Nifty50 index after touching all-time high on 3rd June corrected almost 700 points in less than two months. Bank Nifty share also corrected almost 2000 points after touching an all-time high on 31st May.
Weekly market update: Nifty 50 and Bank Nifty shares price
On a weekly basis, Nifty 50 and Bank Nifty share price fell 133.25 and 811.10 points respectively.
Nifty Midcap and Smallcap index also declined 753 and 233 points which are 4.6% and 4% down respectively in the last week.
On a weekly basis, the top five Nifty 50 shares are Infosys, Sun Pharma, Wipro, UPL, and HDFC. Infosys and Wipro gained after the announcement of their Q1 result. The top Nifty 50 losers are Yes Bank, M&M, Hero Motorcorp, Eicher Motor, and Gail. Yes Bank fell almost 12% after the poor Q1 result.
On the sectoral front, almost all sectors ended in red except few like IT and Consumer Nondurable. Brent crude oil fell around 6.5% in the last week whereas Indian rupee remained almost flat in last week.
Why Nifty 50 and Bank Nifty share price dragged down
Indian share market corrected heavily after the Budget, Bank Nifty share price corrected more than 1700 points in 10 trading sessions after the Budget. Similarly, Nifty 50 also corrected 400 points after the Budget. FIIs are the net seller in the market and if we analyze FIIs data, most of their heavy selling has come after the budget.
We can conclude that the main reason for the market fall is the Budget’s FPI’s “super-rich tax”.The other factors weak monsoon, slow down of the domestic economy, no positive outcome of Trade War. The only relief for the market is Crude Oil prices and Indian rupees both are stable at this moment which is positive for the market.
The impact of the FPI issue is a big negative for the market for the time being. As per the sources, FPI’s may not withdraw their current investment but will hold their further investment in India. They will definitely become conservative for their new investment and fresh investment would only depend on corporate earning and the Indian economy.
Nifty 50 shares Q1 Result in the last week
Last week Yes Bak and Wipro announced Q1 result during the market. Yes Bank result disappointed the market and its share price fell almost 12% during the week whereas Wipro's result meets the Street estimate.
RIL and HDFC Bank announced their Q1 result on last Friday and Saturday respectively after the market. Both the company’s result beats street estimate and on Monday the market will definitely react positively on RIL and HDFC Bank stock.
Next week all major Nifty 50 companies will announce their Q1 result. The big corporates are Kotak Mahindra Bank, HUL, LT, Asian Paints, Bajaj Finserv, Bajaj Finance, Tata Motor, JSW Steel, Bajaj Auto, Maruti, VEDL and ICICI Bank. There are more than 200 plus mid and smallcap companies listed in NSE are going to announce their Q1 results in the coming week.
Next weeks event for the market
Next week there is a monthly derivatives expiry on Thursday market will be volatile. There are 12 Nifty 50 corporates going to announce their Q1 corporate results. Apart from the expiry and corporate earning next week investor should also keep an eye on the global front especially the development of US-China Trade War.
Nifty and Bank Nifty future share price target for next week
Primary Trend of Nifty 50 Future: Volatile (Bias Down)
Range-Bound Trend: All up Moves Initiates Profit Booking (Sale) @ 11584 whereas All Down Moves Initiates Short Covering (Buy) @ 11280
If Nifty Future Moves Above 11493 then you should Buy with 1st Target of 11538 during the day or any point during the week by Trailing the Stop Loss from 11450- 11520- 11550- 11625 FOR the Target of 11538- 11584- 11650
If Nifty Future Moves Below 11415 then you should Sell with 1st Target of 11346 during the day or any point during the week by Trailing the Stop Loss from 11460- 11385- 11345 -11250 FOR the Target of 11346- 11280- 11210
Primary Trend of Bank Nifty Future: Volatile (Bias Down)
Range-Bound Trend: All up Moves Initiates Profit Booking (Sale) @ 30185, whereas All Down Moves Initiates Short Covering (Buy) @ 29220
If Bank Nifty Future Moves Above 30032 then you should Buy with 1st Target of 30185 during the day or any point during the week by Trailing the Stop Loss from 29780- 30120- 30240- 30425- 30505 FOR the Target of 30185- 30336- 30580
If Bank Nifty Future Moves Below 29780 then you should Sell with 1st Target of 29538 during the day or any point during the week by Trailing the Stop Loss from 30032- 29620- 29420- 29340 FOR the Target of 29538- 29380- 29220
Conclusion:
Indian share market update and Nifty 50 and Bank Nifty Share price mentioned above has given you a clear picture of the market last week. In the July series, so far the Nifty 50 index has corrected around 500 points we may see short-covering ahead of expiry.
As Q1 result of RIL and HDFC Bank meets the Street estimate we can see a positive opening on Monday provided the global market support the domestic market. The overall market would remain volatile during the week and traders should trade with strict stop loss.
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Finogyan Team
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