 |
| Bank Nifty Share Price Target |
Nifty share price made a movement of 231 points and closed at 10997.40 gained 17.40 points during the day. Bank Nifty share price was equally volatile made a movement of 608 points and closed at 28204.95 fell 162 points from the previous close.
Indian stock market update on a weekly basis
Indian stock was highly volatile last week. Nifty fell 287 points and Bank Nifty fell 1120 points which are around 2.60% and 3.80% respectively. Last week Nifty midcap and smallcap Index also fell 516 points and 280 points which is more than 3% and 5% respectively.
The top Nifty gainers of the week are TCS, Bharti Airtel, Asian Paints, HCL Tech and HUL. The top Nifty losers of the week are Indiabulls Housing, Zee Ent, Vedanta, Tata Motors and Grasim. Cholaman Inv&Fin is the top gainers in Nifty midcap 100 index and Indiabulls venture is the top loser.
On a Sectoral basis, except IT all sectors ended in red last week. FIIs are the net seller and DIIs are the buyer last week. Last week Brent Crude oil price corrected 2.47% and INR against the US dollar got depreciated 1.15%.
Why the Indian stock market is falling
After the Budget was announced on the 5th of July, all hopes of market revival got shattered. Corrections are seen in the large-cap stocks also like HDFC, Bajaj, RIL, M&M, etc along with mid and small caps stocks. Auto stocks, PSU banks, and NBFCs, metals, realty stocks are at a multi-year low.
There are two-three reasons why the Indian stock market is falling like crazy, firstly the economic slowdown in India. After the International Monetary Fund ( IMF) lowered Indian GDP from 7.3% to 7 for FY20 in July, CRISIL has now revised India’s growth estimate from 7.1% to 6.9%. The core sector industry index grew by just 0.2% in June.
Auto sector sales declined, and now they have started to cut their production. This results in poor quarterly earnings, job loss, and less purchasing power to the people. Similarly, other industries are also affected in the same way. This is a vicious cycle of the economy after the recession than recovery will start, hope we can see the recovery soon.
The second reason for the market fall is the Super-rich tax of FPI. As we all know after the announcement of the super-rich tax in the budget, the market started falling heavily. It looks like there is no ray of hope in this issue at present.
The third reason is from the global front, the global recession, and geopolitical issues. The ongoing Trade War tussle between the US and China has shaken the world’s economy. It has not only made nervous to the global stock market but also the Indian stock market.
The other reasons for the recent Indian stock market fall are Q1 results of Indian companies, delay in monsoon, and liquidity crisis.
Q1 result update in Indian stock market
We have already updated almost all Nifty50 Q1 result update on 31st July except SBI you can read the Q1 result update here. SBI has reported its Q1 result on Friday after the market hours.
Country’s largest PSU Bank State Bank of India has reported a standalone profit of Rs 2312.20 crore for the June quarter. The bank had reported a loss of Rs 4875.85 crore in the corresponding period last year. The SBI has reported a jump of 176% on QoQ in profit against Rs 838.40 crore in March quarter last year
The Net interest income NII grew 5.2% YoY to Rs 22,938.8 crore in the June quarter with a loan growth of 13.8% YoY. The SBI has reported stable asset quality and lower provisioning in June quarter.
Gross and net NPAs in absolute terms, declined both sequentially as well as on a YoY basis. Gross slippages at Rs 16,212 crore for the June quarter increased sharply by 62.38% YoY and 116.01% sequentially. The slippage ratio increased significantly to 2.83% in June Fy20 from 1.39% in March FY19
The share price of SBI closed at Rs 308.45 per share down 2.74% on Friday. Investors can see some corrections in SBI.
Indian stock market events for next week
Next week around 500 corporates will announce their Q1 results. The Nifty 50 corporates like Indiabulls Hsg Fin, Titan, M&M, HPCL, Adani Ports, Tata Steel, Ultratech Cement, Hindalco, BPCL, NTPC will announce Q1 results next week.
The IHS Markit India service PMI is expected on 5th Aug Monday morning, June PMI fell unexpectedly to 49.6 from 50.2 in May.
The RBI monetary policy is scheduled next week on 7th Aug Wednesday at 11.45 am. It is expected that this time again RBI will cut 25bps rate cut. The 25bps rate cut is already discounted in the market. Hence RBI market commentary on inflation, GDP growth and other measures on growth would be important for Indian stock market next week. You can read details about RBI Monetary Policy: CRR | SLR | Repo Rate|Hawkish|Dovish
Nifty and Bank Nifty future trading view for next week
Primary Trend of Nifty Future: Volatile (Bias Down)
Range-Bound Trend: All up Moves Initiates Profit Booking (Sale) @ 11110 whereas All Down Moves Initiates Short Covering (Buy) @ 10890
If Nifty Future Moves Above 11035 then you should Buy with 1st Target of 11072 during the day or any point during the week by Trailing the Stop Loss from 10992- 11049- 11102- 11162 FOR the Target of 11072- 11132- 11192- 11220
If Nifty Future Moves Below 10992 then you should Sell with 1st Target of 10956 during the day or any point during the week by Trailing the Stop Loss from 11035- 10980- 10932 -10845 FOR the Target of 10956- 10892- 10830 -10776
Primary Trend of Bank Nifty Future: Volatile (Bias Down)
Range-Bound Trend: All up Moves Initiates Profit Booking (Sale) @ 28550, whereas All Down Moves Initiates Short Covering (Buy) @ 27890
If Bank Nifty Future Moves Above 28375 then you should Buy with 1st Target of 28518 during the day or any point during the week by Trailing the Stop Loss from 28220- 28550- 28605- 29710 FOR the Target of 28518- 28660- 28830
If Bank Nifty Future Moves Below 28220 then you should Sell with 1st Target of 28050 during the day or any point during the week by Trailing the Stop Loss from 28375- 27980- 27910- 27825 FOR the Target of 28050- 27892- 27740
Conclusions:
The Indian stock market has become highly volatile because of the reasons mentioned above. Traders must remain cautious and trade with stop loss only. Indian stock market is in a downtrend, you can see short covering or pullback but should not try to catch a falling knife.
You may also like to read How to protect your Portfolio and Make Money from the Stock Market Crash
Please share your opinion and views about the post.
If you like the post please share with others
If you like the post please share with others
Happy Investing!
Finogyan Team
Disclaimer-Finogyan has taken due care and caution in compilation of data for its blog. The views and investment tips expressed by investment experts on Finogyan are their own and not that of the website or its management. Finogyan is not SEBI registered Advisors and advises users to check with certified and SEBI registered experts before taking any investment decision. However, Finogyan does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Finogyan especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.
){kind=link}