Market update: How Nifty, Bank Nifty will react on Weak GDP- The Indian stock market ended in green on the last day of the week. The market was volatile throughout the day due to Q1 GDP numbers which announcement after market hours.
In the post-lunch, the market sentiment becomes positive after the news flashed on media that the finance minister will address a press conference on recapitalization and consolidation of PSBs. The news has increased the buying interest in the PSU Banking counter. Apart from this news hopes of Trade talks between the US and China helped to boost market sentiment on Friday the second half.
At close, Sensex gained 263 points and closed at 37332.79 and Nifty was up 74.95 points and closed 11023.25. Bank Nifty share price also gained 122.65 points or by 0.45% and closed at 27427.85. All points are on a spot basis.
Nifty and Bank Nifty on Last week:
On a weekly basis, Nifty gained 194 points and closed at 11,023.25 whereas Bank Nifty up 469 points and closed at 27,427.85. Nifty Midcap 100 gained 298 points and Nifty Smallcap 100 also jump 203 points during the week.
The top five Nifty50 gainers of the week are Britannia Inds, BPCL, Indusind bank, Zee Ent and HDFC. The top five losers in Nifty50 are Bharti Airtel, Indiabulls Housing, Kotak Mahindra Bank, Hero Motorcorp and Reliance Industries. In the Nifty Midcap space, Oberoi Realty is the top gainer and RBL bank is the top loser in the week.
On a sector-wise, Banking, Realty and Metal are the gainers in the last week. On a weekly basis, FIIs are a net seller in the cash segment sold Rs 2435.74 crore and purchased in F&O (Index &Stocks) Rs 6576.02 crores. Last week DIIs bought Rs 4785.76 crores in the cash segment.
Reasons for market gained last week
Last week the Indian stock market gained because of below reasons
- The stimulus package announced by the Finance Minister Nirmala Sitharaman on 23rd Aug after the market.Complete roll-back of FPI super-rich tax announced in the last budget
- Foreign Direct Investments (FDI) norms relaxed by the government for Industries.
- Hopes of Trade talks between the US and China
Next week's event for the Indian Market
On Monday 2nd September, the Indian stock market will be closed on account of Ganesh Chaturthi, there will four trading sessions next week.
Tuesday, the Indian market will first react to the news of PSB consolidation and recapitalization. The movement in Bank Nifty particularly in PSU banking space will be seen on Tuesday.
The Central statistics office on Friday 30th Aug announced the 5% GDP growth rate for the first quarter of the current financial year. It was the weakest growth rate since the 1st quarter of 2013. A sharp decline in GDP numbers is seen compared to the last quarter which was 5.8%. The Indian stock market will definitely react to the weak GDP numbers on Tuesday.
The Markit Manufacturing and Service PMI data will be released on Monday and Wednesday next week. Infrastructure output data will be announced next Monday on 2nd September.
Nifty and Bank Nifty future trading view for next week
Primary Trend of Nifty Future: Volatile to Sideways
Range-Bound Trend: All up Moves Initiates Profit Booking (Sale) @ 11150 whereas All Down Moves Initiates Short Covering (Buy) @ 10880
If Nifty Future Moves Above 11076 then you should Buy with 1st Target of 11138 during the day or any point during the week by Trailing the Stop Loss from 11020- 11115- 11192- 11250 FOR the Target of 11138- 11170- 11202- 11294
If Nifty Future Moves Below 11020 then you should Sell with 1st Target of 10978 during the day or any point during the week by Trailing the Stop Loss from 11076- 10994- 10960 -10915 FOR the Target of 10978- 10945- 10880 -10822
Primary Trend of Bank Nifty Future: Volatile to Sideways
Range-Bound Trend: All up Moves Initiates Profit Booking (Sale) @ 27980, whereas All Down Moves Initiates Short Covering (Buy) @ 27130
If Bank Nifty Future Moves Above 27634 then you should Buy with 1st Target of 27794 during the day or any point during the week by Trailing the Stop Loss from 27580- 27710- 27840- 27980 FOR the Target of 27794- 27905- 28010- 28260
If Bank Nifty Future Moves Below 27475 then you should Sell with 1st Target of 26825 during the day or any point during the week by Trailing the Stop Loss from 27550- 27405- 27320- 27132 FOR the Target of 27362- 27255- 27092- 26946
Conclusions:
On Monday, the Indian stock market will be closed on account of Ganesh Chathurthi. Tuesday, the market will react on PSU banking merger and weak GDP news which came after a market hour last Friday. Indian market will take positively the PSU bank merger news but 6 years' low GDP number is a real concern for the market.
Traders or Investors should closely monitor any developments in the Trade Talks between the US and China.
You may also like to read How to protect your Portfolio and Make Money from the Stock Market Crash
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Finogyan Team
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