FINBLAB RESEARCH: INDIAN STOCK MARKET WEEKLY REVIEW

After having a wonderful rally in the last week ended on 13th April 2018 (where the Sensex gained more than 550 points and the Nifty up by more than 150 points) the Indian Stock Markets witness a phase of consolidation all through 5 trading session (16 to 20 April) ahead of Q4 earnings.

The Markets though enjoy a sense of positivity for the first couple of days of the week backed by Indian Meteorological Department’s (IMD) classification on having a normal monsoon this year and lower WPI Inflation rate. But in the later part of the week, the Markets face setbacks by news of cash crunch in some part of the country and week global cues.

The BSE Sensex gained 224 points or 0.65% on a weekly basis while The NSE Nifty gains 83 points or 0.79% as compared to previous week. Here are the details on Indian Stock Market Weekly Review (16 Apr 2018 to 20 Apr 2018) by Finblab.

16-APR-2018

• After a wonderful finish in the last week, the Indian Stock Markets open on caution note today amid geopolitical tensions on the back of US-led airstrikes on Syria, higher crude oil prices, and sluggish global cues.
• The Markets remain range bound till afternoon but the recovery in the last hour of trade backed by hopes of normal monsoon expected in the current year (the south-west monsoon is likely to be 97% of the long period average (LPA) according to the Indian Meteorological Department’s (IMD) classification, lower inflation rate, and favourable earnings season boosted sentiment. Both the news has helped the market close higher for the 8th consecutive session on Monday.
• The BSE Sensex once lost 406 points in intraday trade but recovers smartly and ends 113 higher at 34,305 while the NSE Nifty rose 48 points and closed at 10,528.

17-APR-2018

• It was a range bound trading session all through the day as far as Indian Stock Markets are concern! Normal monsoon forecast by IMD for June-September period and positive global cues boosted the market sentiment. Investors are absolutely in wait and watch mood before the corporate earnings from some big names like TCS and others.
• The 30-share BSE Sensex was up 90 points at 34,395 while the 50-share NSE Nifty rose 20 points to 10,549. It was the 9th consecutive day where Bulls have upper hand at the Indian Stock Market.

18-APR-2018

• The market finally broke its 9 days upward journey in Wednesday’s trade. Though opened on a positive note, the markets fell in the afternoon session backed by mixed corporate earnings, higher crude oil prices, and cash crunch (shortage of cash in ATM in some parts of India).
• The 30-share BSE Sensex was down 63 points and closed at 34,332 while the Nifty fell 23 points to 10,526 amid consolidation.

19-APR-2018

• After shedding 60 odd points on the Sensex on Wednesday’s trade, the Indian Stock Markets once again witness a positive bounce back on Thursday’s trading session even as crude oil prices hit multi-year highs. Positive cues from the global markets and rally in the metal stocks on London Metal Exchange also helped the indices posted marginal gains.
• The BSE Sensex closed up by 96 points at 34,427 while the NSE Nifty rose 39 points to close at 10,565.
• India’s largest IT services provider TCS today presented its Q4 numbers today after markets hours. The Company beat analyst expectations on all fronts. The operating profit margin of the Company was in line expectation.
• Consolidated profit of the company grew by 5.7% to INR 6,904 Cr while revenue increased by 3.8% to INR 32,075 Cr for the quarter ended March 2018. The Company today also announced BONUS Shares in the ratio of 1:1.

20-APR-2018

• It was a volatile trading session as far as Indian Stock Markets are concern, in a narrow range though. The markets lost more than 100 points on the Sensex but it was the IT stocks that have helped the markets to erase all lose before closing flat to marginally negative.
• The Sensex lost just 12 points to close at 34416 while the Nifty lost 1 point and close at 10564.

Indian Stock Market Weekly Review – A Week Gone By

Future Outlook –

Domestic news flows whether it is Indian Meteorological Department forecast on monsoon, March Inflation numbers and good set of Q4 results from the country’s biggest IT firm TCS (1:1 bonus of course) has helped the Sensex gains more than 200 points and Nifty to post more than 80 points gain on a weekly basis.

Going forward it is likely that the corporate earnings are the key and will be the driving force as far as Indian Stock Markets are concern.

On technical parameters, the Nifty index formed a Doji kind of pattern for the second consecutive trading session in a row. Besides that, the way crude prices are increasing it is an alarming situation as far as Indian Stock Markets are concern.

Since the Nifty Index formed a Neutral pattern on a daily chart investor are advised to tread with caution and wait for a decisive move before taking fresh trades.

Relevant Link – Indian Stock Market Weekly Review

Also Read –

1) Finblab’s Valuepick for of the month of April – RUCHIRA PAPERS LIMITED

2) Finblab’s March ’18 Valuepick BALKRISHNA INDUSTRIES LIMITED (25.51% returns in just 45 days)

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.