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| Indian Stock Market |
A highly volatile week of Indian stock market has ended in a very positive note. On a weekly basis, Nifty made a high of 11381.90 and low of 10,704.80 a movement of 677.10 points. Whereas Bank Nifty made a high of 29418.95 and low of 26727.55. Both the high and low of Nifty and Bank Nifty was made last Friday after the press conference of Finance minister.
Weekly updates of Indian Stock Market
Indian stock market was moving on southward direction with negative sentiments of economic slowdown and geopolitical issues. The announcement of Corporate tax cut and expectation of GST cuts has given a big boost to the Indian stock market. Friday's announcement will prove to a game changes for the stock market.
The week started with negative sentiments, After the drone attack on Saudi on last Saturday Crude oil prices soar and Indian rupee depreciates. As India is the largest crude oil importer there was basically a fear of crude oil supply. The next day Saudi also assures India about the smooth supply of crude oil. Thankfully after two days, everything got stable.
After two negative trading sessions, the Indian stock market gained last Wednesday ahead of the FOMC meeting. Market expectation was 25bps cut but commentary was most important.
On Wednesday evening as expected, FED cut 25bps points but offered mixed signals for next easing. Indian stock market fell on last Thursday because of FED commentary was not that positive and also Bank of Japan retained the same policy. The global cues were not supportive on Thursday.
On Friday market opened in green with the expectation of GST cut. The surprise press conference and announcement of corporate tax cut in the morning has cheered the market. The sentiment of the has become positive with measures taken by the government.
Nifty and Bank Nifty last Week
On a weekly basis, Nifty gained 198.30 points and closed at 11274.20. The Bank Nifty gained 882.80 points and closed at 28,981.55. The Nifty mid and smallcap also gained 352 points and 36.65 points during the week.
The top five Nifty gainers of the week are Titan, HUL, Bajaj Finance, Asian Paints and Britannia. The top five Nifty losers of the week are Yes Bank, Zee Ent., TCS, NTPC and Power Grid.
On a weekly basis, FII’s sold Rs 3375.38 crores and DII’s bought Rs 4821.81 crores in cash segment. FIIs are net buyers in the F&O segments. Brent crude oil future price has increased due to the Saudi attack in the current week. The last closing of Brent crude oil price is $64.63 per barrel it has increased 7.32% on a weekly basis. On a weekly basis, the Indian rupee has marginally depreciates of 0.13% and closed at Rs 71.08 against the US dollar
Primary Trend Nifty Future: Trend Up (volatile)
Range-Bound Trend of Nifty Future: All up Moves Initiates Profit Booking (Sale) @ 11450 whereas All Down Moves Initiates Short Covering (Buy) @ 11050
If Nifty Future Moves Above 11322. Then you should Buy with 1st Target of 11350 during the day or any day in the week with a Stop Loss of 11240. FOR the Target of 11350- 11380- 11415- 11450.
If Nifty Future Moves Below 11245. Then you should Sell with 1st Target of 11197during the day or any day in the week with a Stop Loss of 11294 FOR the Target of 11197- 11148- 11100- 11020
Primary Trend of Bank Nifty Future: Trend Up (volatile)
Range-Bound Trend of Bank Nifty Future: All up Moves Initiates Profit Booking (Sale) @ 29800, whereas All Down Moves Initiates Short Covering (Buy) @ 28200
If Bank Nifty Future Moves Above 29076. Then you should Buy with 1st Target of 29170 during the day or any day in the week with a Stop Loss of 28880 FOR the Target of 29170 - 29410 - 29660- 29,876
If Bank Nifty Future Moves Below 28880. Then you should Sell with 1st Target of 28550 during the day or any day in the week with a Stop Loss of 29076 FOR the Target of 28550- 28250- 27980- 27840
Conclusions:
After, the Friday’s rally in the Indian stock market, investors' expectation has increased. We may see FIIs to come back again in the market. After the Fridays rally market may see some profit booking before further rally.
On the other side, we cannot ignore the geopolitical issues and Q2 earning. Traders are advised to trade cautiously with a strick stop loss and also follow the global cues. Traders can also follow the Nifty and Bank Nifty trend given above to trade next week
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Finogyan Team
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