FINBLAB RESEARCH: INDIAN STOCK MARKET WEEKLY REVIEW
The PNB scam, February F&O Expiry, and global cues are some of the factors that threatened the Indian Stock Market for the first couple of days of the week; even the Sensex lost more than 400 points on Monday’s trade at one point of time. But thanks to the Wednesday and Friday trade which help the Indian Stock Market to close flat to minor positive on a weekly basis. The Nifty managed to close 38 points up while the Sensex closed 132 up on a weekly basis. Here is Indian Stock Market Weekly Review (19 Feb 2018 to 23 Feb 2018) by Finblab.
Monday’s trading session witnessed a huge volatility due to the fact that the amount in the Punjab National Bank scam led by Nirav Modi could rise even further. The Sensex dips more than 450 points on the intraday basis with the news that there could be more number of the defaulters and the upcoming derivatives expiry added fuel as well. Benchmark indices closed below their 100 DMA, with the BSE Sensex losing 236 points to 33,775. The NSE Nifty closed below the 10,400 levels, falling 74 points to 10,378.
Tuesday’s was also a volatile session. The Indian Stock Markets erased gains in last hour of trade to close slightly lower. Both the Sensex and Nifty dragged by weak global cues and a sharp correction in the rupee. A couple of news like the NPA’s (Non-Performing Assets) of the PSU Banks could increase even further and the recent alleged PNB scam has clearly impacted the sentiments. The 30-share BSE Sensex was down by 71 points at 33,704 and the 50-share NSE Nifty fell 18 points to 10,360.
It was a day before February F&O Expiry. All-round buying was seen across the sectors especially in the IT sectors where NASDAQ has posted a positive outlook for the Indian IT sector; with cautions though. It was a historic day for the TATA Group as well, where the Group Director Natarajan Chandrasekaran has successfully completed one year at the office. The NSE Nifty up today by 37 points to 10397 whiles the BSE Sensex up by 141 points to close at 33845.
The Indian Stock Markets traded in a narrow range for the most part of the day before witnessing a minor pullback in the last hour of trade. The Nifty was down by 15 points while the Sensex was down by 25 points on the expiry.
March series started with a bang today. The Indian Stock Markets post a sharp recovery as all the major indices closed around its highest intraday levels; thanks to the comments from the US Federal Reserve official relieved concerns of faster interest rate increases in the world’s largest economy. His comments comforted investor’s sentiments that were starting to fear that the US central bank would raise rates 4 times in 2018 instead of 3 times that was projected earlier. The Nifty 50 ended at 10491, up 108 points (1% higher from the previous close), while the Sensex closed 323 points higher at 34142.
Indian Stock Market Weekly Review – A Week Gone By
Future Outlook –
- The Indian Stock Markets have corrected more than 7.50% from its recent highs (made in the last couple of sessions of January 2018) before finding support at near 10275 to 10305 levels as far as Nifty is concern. On technical charts too; it is visible that the Nifty has found its support somewhere around 89 DEMA.
- News from the US Fed Reserve official on Thursday said he expects the central bank to raise interest rates twice in 2018 as against its own guidance of three hikes is a welcome move as far as Indian Markets are concern.
The above-listed factors are good enough to give support to the Indian stock Markets going forward, however, any further correction at this juncture should be considered as a healthy buying opportunity for the investors in quality companies with strong financials, sound management, and bright outlook. All The Best!
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