Finblab Research: Indian Stock Market Weekly Analysis (02 July ’18 to 07 July ’18)

A rollercoaster weak as far as Indian Stock Market is concern!

Concerns over a trade dispute between the U.S and China, higher crude oil prices, week INR against USD are some of the factors that keep the Indian bourses range-bound all the week. Against all these, bulls were able to manage control over markets.

The BSE Sensex gained 234 points whiles the NSE Nifty gained 59 points on a weekly basis as compared to previous week. Here is an Indian Stock Market Weekly Analysis (02 July 2018 to 07 July 2018) by Finblab.

02-7-2018 (Monday)

• A weak trading session at the Indian Stock Markets!
• The Indian Stock Markets (the Sensex and the Nifty) traded in the red all through the day due to global weakness (1) trade tensions between the US and China, and (2) political uncertainty in Germany.
• The Sensex at one point in time was down by more than 250 points due to heavy selling pressure but recover smartly in last 30 minutes of trade and ended 159 lower.
• The BSE Sensex fell 159 points to close at 35,264 and the NSE Nifty shed 57 points to close at 10,657
• IPO Listing: Shares of RITES Limited, the Railways consultancy firm, got listed on the bourses today. The stock has witness strong buying demand from investors on the very first day and the stock rallied as many as 15% (closed at INR 212.70 on the BSE against issue price of INR 185) despite weak market sentiments.
• Top 5 Gainers on the NIFTY: INFY, ASIANPAINT, TITAN, UPL, BAJAJ-AUTO up by 1% to 2.5%
• Top 5 Losers on the NIFTY: BHARTIARTL, NTPC, HINDALCO, ADANIPORTS, IBULHSGFIN down by 2.5% to 3.5%

03-7-2018 (Tuesday)

• A volatile trading session at the Indian Stock Market!
• The Indian Stock Markets opened flat on the second day of the week and remain range bound till the afternoon session. But both the Sensex and Nifty recovered sharply from opening lows in the later part of the day and closed with gains of over 100 points as far as Sensex is concern and the Nifty up by 40 odd points.
• Market participant looked cautious throughout the session due to a continuous trade war between the US and China (the US has set July 6 as the deadline to impose tariffs on 34 billion USD worth of goods from China)
• For today, the BSE Sensex rallied 114 points to close at 35379 while the Nifty50 gained 42 points to close the level of 10,700
• News of the Day: The BSE will delist as many as 222 companies from July 4 as trading in their shares has remained suspended for over 6 months. The move comes at a time when authorities are clamping down on shell companies for being allegedly used as conduits for illicit fund flows.

04-7-2018 (Wednesday)

• Strong trading session at the Indian Stock Market!
• The Indian Stock Markets continues its upward journey for the second consecutive day on Wednesday despite negative global cues. It was the better than expected macro data that has helped both the Sensex and Nifty closed on a day’s high.
• The 30-share BSE Sensex gained 267 points to close at 35,645 and the 50-share NSE Nifty rallied as many as 70 points to close at 10,770
• News of the Day: The Union Cabinet today approved the proposal to hike Minimum Support Price (MSP) for all Kharif crops by 1.5 times of the input cost for the 2018-19 season – a move that is expected to boost Indian farmers’ income. The improved MSP is likewise seen as a step towards meeting the Prime Minister Narendra Modi’s promise to double the farmer’s income by 2022.
• Stocks like Chambal Fertiliser, Deepak Fertilisers, Kaveri Seed, Kohinoor Foods, LT Foods, Mangalam Seeds, and RCF gained Between 1% to 10% in the intraday trade due to the government’s decision to hike minimum support price.

05-7-2018 (Thursday)

• A rollercoaster trading on the Indian bourses today!
• Concerns over a trade clash between the U.S and China coupled with higher crude oil prices and weak rupee against USD have weighed on market sentiment on Thursday’s trade.
• Both the Sensex and Nifty traded dull all through and witnessed selling pressure in the later part of the day as investors and traders adopted a note of caution ahead of a trade tariff deadline between the US and China.
• The BSE Sensex closed 71 lower at 35575 and the Nifty sheds 20 points to close at 10750 on Thursday.
• The share of Reliance Industries Limited was in news today as the company was heading for its 41st Annual General Meeting. The shares of Reliance Industries closed lower by over 2% even though RIL’s Chairman Mukesh Ambani said that the company plans to double its revenues by 2025.

06-7-2018 (Friday)

• A day of volatility at the Indian Stock Market!
• The Indian Stock Markets opened on a high note yet again on Friday but trading remains muted all through the day. In the later part of the day both the Sensex and Nifty erased most of its intraday gains as investors prefer to book profits ahead of Q2 FY18-19 earning starting from next week onwards.
• U.S. tariffs worth 34 billion USD of Chinese exports once again took effect on Friday trading, and concerns of reprisal by Beijing somewhat dampened sentiment across the region.
• The BSE Sensex closed 83 points higher to close at 35,657 while the Nifty50 ended 23 points higher to close at 10,773.
• IPO Listing: Auto component maker Varroc Engineering Limited gets listed on the bourses today at INR 1015 (5% higher against the issue price of INR 967). At the end of trading session the stock managed to close at INR 1040.55 on BSE and INR 1037.35 on NSE, up more than 7% to its issue price.

Indian Stock Market Weekly Analysis – A Week Gone By

Future Outlook –

Irrespective of a series of bad news the Indian Stock Markets witnessed a positive momentum (marginally though) on the week ended on July 7 2018.

Markets are largely trading in tandem with global peers. But, the Indian Stock Markets is clearly waiting for the trigger to move forward and Q2 FY18-19 is one of them which will start from the early next week that the market participants are eying. The south-west monsoon hits some of the parts of the country last week which is a big relief.

On the technical front the Nifty took support at 10589 which is around the 89 EMA on the daily chart. In the absence of clear trend Finblab advised the investors and traders to remain cautious. For the time-being the Nifty50 has to close above 10,930 levels whiles on the downside 10,600 is a crucial support!

Also Read –

1) Finblab’s Valuepick Stock for the month of JULY 2018 – CEAT LIMITED

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