FINBLAB RESEARCH: INDIAN STOCK MARKET WEEKLY REVIEW


It is the kind of a week that the Indian Stock investors will remember for a long time. All sorts of news whether prolonged PNB scam, Donald Trump’s tariff announcement, summoned by the SFIO to ICICI Bank’s Chanda Kochhar and Axis Bank’s Shikha Sharma, mixed macroeconomic data etc. keep both the Sensex and Nifty under pressure.

For the week, both indices – BSE & NSE – lost more than 2%. The BSE Sensex lost more than 740 points while the NSE Nifty lost more than 230 points on a weekly basis. Here is the Indian Stock Market Weekly Review (05 Mar 2018 to 09 Mar 2018) by Finblab.

5-MAR-2018

Indian Stock Markets opened on a week node on Monday’s trade after a long week-end. Both, the Sensex and Nifty remain in a negative zone for the fourth consecutive session despite BJP’s massive victory in the state of Tripura. Some of the factors that were pushing the markets down are mixed macroeconomic data, and of course, the banking fraud. US President Donald Trump’s tariff announcement also pulled the markets down. The 30-share BSE Sensex was down 300 points to close at 33,747, while the 50-share NSE Nifty falling 99.50 points and closed at 10,359.

6-MAR-2018

The Indian Stock Markets open marginally lower on Tuesday’s trade but fell sharply in last hour of trade as both the Sensex and Nifty ended at fresh 2018 closing lows despite strong global cues.

Both, the Sensex and Nifty losses for fifth consecutive day, especially after the ICICI Bank MD and CEO Chanda Kochhar and Axis Bank’s Shikha Sharma have been summoned by the SFIO (Serious Fraud Investigation Office), in the INR 12,700 Cr PNB fraud case. The BSE Sensex was down 430 points at 33,317 and the NSE Nifty dropped 110 points to close at 10,249.

7-MAR-2018

The pain is not over yet as the benchmark indices loss ground on sixth straight day. The pro-long Nirav Modi case along with Mehul Choksi and other pulled the Sensex down below 33000 during the trading session before closing at 33033. The BSE Sensex closing down 284 points at 33,033 while the NSE Nifty ended below 10,200 levels, falling 95 to close at 10,154.20.

8-MAR-2018

It was a day of relief for the Indian Stock Markets as both the Sensex and Nifty ended in green after a six days losing streak. Heavy short-covering as well as the media reports indicating some countries may be excluded from the US import tariff plan boosted the sentiments of the markets. The Sensex surged as much as 407 points intraday, before closing up 318 points at 33,352 while the NSE Nifty rallied 88 points to 10,243 amid huge volatility.

9-MAR-2018

The Markets opened in the green but failed to extend Thursday’s gains due to sell-off in last hour of trade as the indices closed marginally lower. Pharma and Auto stocks dragged the markets down, but buying in selective technology stocks capped losses. The Sensex was down 44 points at 33,307 and the Nifty fell 16 points to 10,227.

 

Indian Stock Market Weekly Review – A Week Gone By

Indian Stock Market Weekly Review

 

Future Outlook –

Though the Indian Stock Markets witness heavy sell-off throughout the week, and corrected almost 10% from the peak (11172), the Nifty took support at 10140 levels – the 200 DMA. It also forms a hammer pattern (a type of bullish reversal candlestick pattern) around this level.

Short-term trigger for the markets that the Investors and traders looked at this point in time is (1) the GST Council meet that is scheduled to be held on Saturday, and (2) macro data like WPI & CPI inflation, IIP which are scheduled next week.

Considering all this, it is likely that the Indian Stock Markets will face a range bound movement between 10100 to 10350 zones. One of the market participants is of the view that what we are experiencing now is a phase of heightened volatility and not a bear market; and such markets present a good case for a buy on dips kind of strategy. Let’s see how things work out!

 

Also Read –

(1) Detail Analysis and Finblab View on up-coming BHARAT DYNAMICS LIMITED IPO

(2) Finblab’s Valuepick of the month BALKRISHNA INDUSTRIES LIMITED

 


Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I ( Vishal Dalwadi ) or “Fin Blab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.


 

 

 

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About me

Vishal Dalwadi

Vishal Dalwadi

Vishal is an MBA (Finance) post-graduate. He is the founder and owner of "FinBlab". His blog aims at providing information and research on Stock market and sectors including Mutual funds, IPOs, Insurance and more.

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