This week witnessed a remarkable performance in the Indian stock market as the BSE Sensex surged by 0.77 percent, gaining 500.65 points to close at 65,387.16. Simultaneously, the Nifty50 index showed strength by adding 0.87 percent, resulting in a gain of 169.5 points and concluding the week at 19,435.30.
The positive momentum in the market was fueled by encouraging GDP figures and robust manufacturing PMI data for the first quarter of this fiscal year. These factors allowed the benchmark indices to break a five-week losing streak, overshadowing concerns such as a weak monsoon, rising crude oil prices, and mixed global market trends.
However, it was not only the large-cap indices that demonstrated resilience; the broader indices also outperformed expectations. The BSE Mid-cap, BSE Small-cap, and BSE Large-cap indices recorded gains of 2.3 percent, 3.8 percent, and 1 percent, respectively.
Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities, commented on the market's performance, stating, "Indian equities posted healthy gains this week. Large indices like the BSE-30 and the NSE-50 gave weekly returns of close to 1 percent. Indian mid-cap and small-cap indices outperformed their large-cap peer."
On the sectoral front, the BSE Metals and BSE Realty indices stole the limelight with weekly gains exceeding 5 percent. Other sectors that posted robust weekly gains included BSE Commodities, BSE Auto, BSE Capital Goods, and BSE Power. In contrast, the BSE FMCG index saw a negative return for the week.
Chouhan added, "India's real GDP growth in Q1FY24 came in at 7.8 percent. In the near term, the market is expected to keep a close watch on the impact of the weak monsoon in August and the rise in crude oil prices."
Sector-wise, the BSE Metal index registered an impressive 6 percent jump, while the BSE Realty index surged by 5.7 percent. Additionally, the BSE Telecom index climbed 4.5 percent, and both BSE Power and Auto indices saw gains of 3.4 percent each. Conversely, the BSE FMCG index experienced a 0.5 percent decline.
The BSE Small-cap index emerged as a standout performer, surging by 3.8 percent. Among the small-cap stocks that stood out were Railtel Corporation of India, India Pesticides, Optiemus Infracom, HLV, Take Solutions, RattanIndia Power, Atul Auto, Jai Balaji Industries, Gokaldas Exports, Cerebra Integrated Technologies, Pokarna, Uflex, Coffee Day Enterprises, Skipper, and Sharda Motor Industries, all recording gains ranging from 25 to 46 percent.
On the flip side, GNA Axles, Digispice Technologies, Kuantum Papers, Waaree Renewable Technologies, Newgen Software Technologies, and Electronics Mart India witnessed declines of 10 to 46 percent.
Foreign institutional investors (FIIs) continued their selling spree for the sixth consecutive week, divesting equities worth Rs 4,311.58 crore. In contrast, domestic institutional investors (DIIs) exhibited a contrasting trend by purchasing equities worth Rs 9,570.03 crore. However, for the month of August, FIIs sold equities worth Rs 20,620.65 crore, while DIIs bought equities worth Rs 25,016.95 crore.
Nifty50 Outlook
Amol Athawale, Vice President - Technical Research, Kotak Securities
Analyzing the daily and intraday charts, the Nifty displayed a double bottom formation, indicating a strong possibility of an upcoming rally. Moreover, a long bullish candle on the daily charts supports the case for a continued uptrend. Key support is expected at 19,350, while the index could potentially rally towards 19,575. However, if support at 19,350 is breached, the uptrend might face vulnerability, with potential declines towards 19,275-19,220.
For Bank Nifty traders, the crucial support level is at 44,200. A move above this support could lead to gains towards 44,700 and 45,000. Conversely, a breach of 44,200 could result in a retreat towards 43,900-43,700 levels.
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas
The positive momentum in the market was fueled by encouraging GDP figures and robust manufacturing PMI data for the first quarter of this fiscal year. These factors allowed the benchmark indices to break a five-week losing streak, overshadowing concerns such as a weak monsoon, rising crude oil prices, and mixed global market trends.
However, it was not only the large-cap indices that demonstrated resilience; the broader indices also outperformed expectations. The BSE Mid-cap, BSE Small-cap, and BSE Large-cap indices recorded gains of 2.3 percent, 3.8 percent, and 1 percent, respectively.
Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities, commented on the market's performance, stating, "Indian equities posted healthy gains this week. Large indices like the BSE-30 and the NSE-50 gave weekly returns of close to 1 percent. Indian mid-cap and small-cap indices outperformed their large-cap peer."
On the sectoral front, the BSE Metals and BSE Realty indices stole the limelight with weekly gains exceeding 5 percent. Other sectors that posted robust weekly gains included BSE Commodities, BSE Auto, BSE Capital Goods, and BSE Power. In contrast, the BSE FMCG index saw a negative return for the week.
Chouhan added, "India's real GDP growth in Q1FY24 came in at 7.8 percent. In the near term, the market is expected to keep a close watch on the impact of the weak monsoon in August and the rise in crude oil prices."
Sector-wise, the BSE Metal index registered an impressive 6 percent jump, while the BSE Realty index surged by 5.7 percent. Additionally, the BSE Telecom index climbed 4.5 percent, and both BSE Power and Auto indices saw gains of 3.4 percent each. Conversely, the BSE FMCG index experienced a 0.5 percent decline.
The BSE Small-cap index emerged as a standout performer, surging by 3.8 percent. Among the small-cap stocks that stood out were Railtel Corporation of India, India Pesticides, Optiemus Infracom, HLV, Take Solutions, RattanIndia Power, Atul Auto, Jai Balaji Industries, Gokaldas Exports, Cerebra Integrated Technologies, Pokarna, Uflex, Coffee Day Enterprises, Skipper, and Sharda Motor Industries, all recording gains ranging from 25 to 46 percent.
On the flip side, GNA Axles, Digispice Technologies, Kuantum Papers, Waaree Renewable Technologies, Newgen Software Technologies, and Electronics Mart India witnessed declines of 10 to 46 percent.
Foreign institutional investors (FIIs) continued their selling spree for the sixth consecutive week, divesting equities worth Rs 4,311.58 crore. In contrast, domestic institutional investors (DIIs) exhibited a contrasting trend by purchasing equities worth Rs 9,570.03 crore. However, for the month of August, FIIs sold equities worth Rs 20,620.65 crore, while DIIs bought equities worth Rs 25,016.95 crore.
Nifty50 Outlook
Amol Athawale, Vice President - Technical Research, Kotak Securities
Analyzing the daily and intraday charts, the Nifty displayed a double bottom formation, indicating a strong possibility of an upcoming rally. Moreover, a long bullish candle on the daily charts supports the case for a continued uptrend. Key support is expected at 19,350, while the index could potentially rally towards 19,575. However, if support at 19,350 is breached, the uptrend might face vulnerability, with potential declines towards 19,275-19,220.
For Bank Nifty traders, the crucial support level is at 44,200. A move above this support could lead to gains towards 44,700 and 45,000. Conversely, a breach of 44,200 could result in a retreat towards 43,900-43,700 levels.
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas
From a technical perspective, the Nifty experienced a notable rebound from the 19,250 zone, where buying interest emerged. Daily and hourly momentum indicators have triggered a positive crossover with divergence, signaling a bullish outlook in the short term.
On the weekly charts, the Nifty managed to close in positive territory after five consecutive weeks of decline, suggesting that it has reached a region where buying interest is evident. Taking these factors into account, the short-term outlook on the index
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