Finblab Research: Indian Stock Market Weekly Analysis

Highly volatile week (in a narrow range though) as far as Indian Stock Markets are concern!

In the absence of major news (except that of corporate earnings) the Indian Stock Markets traded in the narrow range throughout the week, with the 10,500 to 10,700 range on the Nifty and 34,600 to 35,300 on the Sensex.

There was some positive news like the announcements from the Reserve Bank of India on borrowing norms and minor correction in crude oil prices but that fails to help markets post extraordinary gains.

The BSE Sensex lost 59 points whiles the NSE Nifty lost 73 points on a weekly basis as compared to previous week. Here is an Indian Stock Market Weekly Analysis (30 Apr 2018 to 04 May 2018) by Finblab.

30-APR-2018

• Good and solid opening for the Indian Stock Market as far as Monday’s trading session is concern!
• All sorts of news, like (1) correction in the crude oil prices, (2) easing up the norms for extra commercial borrowing by the Reserve Bank of India (RBI), (3) better Q4 corporate earning numbers – especially from HDFC, and (4) positive global cues boosted the mood of the markets.
• The BSE Sensex rallied 191 points to close at 35,160 while the NSE Nifty ended above 10,700 levels rising 47 points to close at 10,739.
• Market heavyweights Housing Development Finance Corporation (HDFC) today presented its Q4 numbers today, after market hours. The Company reported a 39% jump in Net Profit to INR 2,846 Cr for the 4th quarter ending March 2018, while the Net Interest Income (NII) grows 4% to INR 3,249 Cr. The company’s total loan book stood at INR 359,442 Cr, up by 21% over last year.

01-MAY-2018

• The Indian equity markets remain closed today because of Maharashtra Day.

02-MAY-2018

• Range bound session at the Indian Stock Market!
• Benchmark indices ended the range bound session on a flat note Wednesday ahead of Federal Reserve’s policy meeting.
• The 30-share BSE Sensex was up 16 points at 35,176 while the 50-share NSE Nifty fell 21 points to 10,718.

03-MAY-2018

• Volatile trading session as far as Thursday’s is concern!
• Both the Sensex and Nifty ended in red following global weakness amid US-China trade talks. Most global markets today lower in the trade as investors digested Federal Reserve’s views on inflation and the focus again shifted to US-China trade talks.
• The BSE Sensex ended 73 points lower at 35,103 whiles the NSE Nifty closed below 10,700 levels, down 38 points at 10,680.

04-MAY-2018

• Again a volatile trading session at the Indian Stock Market!
• Trading in a narrow for a major part of the day, some selling in the last hour of trade helps the market closes in red. The market today closed lower for the 2nd consecutive day on Friday amid weak Asian cues and profit booking.
• The 30-share BSE Sensex was down 188 points at 34,915 and the 50-share NSE Nifty fell 61 points to 10,618.
• It was a historic day for the Indian Stock Market, as the market regulator Securities and Exchange Board of India (SEBI) today, after market hours, announced that stock exchanges will now be able to trade in Equity Derivatives Segment between 9 AM and 11:55 PM. The step was taken with a view to enabling integration of trading of various segments of securities market at the level of exchanges.

Indian Stock Market Weekly Analysis – A Week Gone By

Future Outlook –

The Indian Stock Markets ended on a flat note the week ended on 4th April 2018. Corporate earning so far has helped both the Sensex and Nifty to close above that psychological level of 35,000 and 10,700 respectively. But, it is fair to conclude that the investors are definitely in a wait and watch mood ahead of Karnataka election and its outcome.

The crude oil prices surges as many as 2% on Friday (highest since November 2014) as global supplies remained tight and the market awaited news from Washington on possible new U.S. sanctions against Iran. And, the higher P/E ratio could put pressure on the markets.

On a technical front, the Nifty 50 which started on a strong note for the first couple of trading session failed to hold on to momentum and quickly trimmed gains on Thursday and Friday and closed just above the crucial support level of 10,600.

The Technical chart indicates if the Nifty Index convincingly closes above 10,700 levels and stays there for two to three sessions could put bulls back in charge of markets, and close below 10,600 levels could fuel selling pressure.

Market regulator SEBI in a landmark decision on May 4, 2018, announced, after market hours, that stock exchanges will now be able to trade in the Equity Derivatives Segment between 9 AM and 11.55 PM (from 1 of October 2018 though) is a good move. It is interesting to see, how markets will react to this on Monday’s trading session.

Relevant Link – Indian Stock Market Weekly Review

Also Read –

1) Finblab’s Valuepick Stock for the month of May – GMM PFAUDLER LIMITED

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