Indian Stock Market: Nifty and Bank Nifty in bear grip

Indian Stock Market updates- after touching record high in April, Indian Benchmark Indices are now under the Bear grip. Nifty lost 433 points and Sensex sheds 1500 points during the week. In the last day of the week, Nifty closed 11278 whereas Sensex was closed at 37463. Bank Nifty was down 914 points and closed at 29040 on last Friday. Nifty Mid and Small cap 100 was also down more than 2.5 percent and 3 percent respectively during the week.


Events so far in the Indian Stock Market



A correction was expected in the Indian stock market, FIIs are the net seller in May series, so far FIIs sold approx 4000 cr out of 60000 Cr investment in last 3 to 4 months. DIIs are the net buyers in May Series, they bought approx 2000 cr in this series.


The other reasons for the recent fall in the market are fresh Trade war tension between the US and China, Q 4 results from corporates and election uncertainty. As per the satta bazaar, the outcome of the election result will not be satisfactory. It would tough to get a stable government and 3rd front may also come in to picture after 23rd May.


The Index of Industrial Production (IIP) data released on last Friday after market hours. India’s Industrial output declined by 0.1 percent in March, hitting a 21 month low, due to the contraction in manufacturing, capital goods, and consumer durables. The cumulative growth for the period of FY 18-19 shows factory output growth was at a three year low of 3.6 percent, down from 4.4 percent in FY17-18. This indicating probably a slowdown in the Indian economy and create a real concern for further FII investment.


Last week Q4 Result of Nifty 50 stocks



On the Q4 result front of Nifty 50 stocks, Airtel announced its 4th quarter result on 6th May, its consolidated net profit jumped 29 percent YoY at Rs 107.2 Cr. It had reported a net profit of Rs 82.9 Cr a year ago and Rs 86.2 Cr. in the previous quarter ended December. ICICI Bank reported a 5 percent drop in net profit to Rs 969 Cr. in the 4th quarter result. Banks NII increased and net NPA has decreased for the quarter.


SBI the largest PSU bank has reported a net profit of Rs 838 Cr for the 4th quarter but misses street estimated due to higher provision. The Bank has reported improvement in asset quality and an increase in net interest income (NII). The Engineering and Construction major Larsen and Toubro (L&T) reported its Q4 result last Friday. Its net profit rose 8 percent to Rs 3418 Cr. in the March quarter YoY. The Board has approved a dividend of Rs 18 per share.


Next week some big corporates in Nifty 50 stock list are going to announce the Q4 result like HDFC, ITC, Bajaj Finserve, Bajaj Finance, Hindalco, Bajaj Auto, Dr. Reddy, IOC, and UPL. Other than these big corporates more than 400 corporates are going to announce Q4 result next week ahead of Lok Sabha Election result outcome.




Next weeks Event in Indian Stock Market



Next week on Monday 13th May CPI will be announced after a market hour and on Tuesday WPI will be released. On 15th May Balance of Trade, data will be released and Friday 17th May Foreign exchange reserve data will be announced.


Nifty 50 Stocks Top Gainers and Losers of the Week.







Nifty 50 Stocks-Top 5 Gainers of the Week
Company Name LTP  (Rs ) Prev Close (Rs ) Change (Rs ) Change (%)  52 week H/L( Rs)
Zee Entertainment 371.20 357.90 13.30 3.72 604.90-288.30
St Bk of India 308.05 299.30 8.75 2.92 339.65-237.85
Bharti Airtel 324.10 315.45 8.65 2.74 379.85-254.20
Titan Company 1132.10 1104.45 27.65 2.50 1,165.00-732.30
Indiabulls Hous. 698.05 681.60 16.45 2.41 1,397.00-575.35












Nifty 50 Stocks-Top 5 Losers of the Week
Company Name LTP  (Rs ) Prev Close (Rs ) Change (Rs ) Change (%)  52 week H/L( Rs)
Tata Steel 486.80 519.15 -32.35 -6.23 647.60-441.35
HCL Technologies 1086.65 1136.60 -49.95 -4.39 1,187.60-880.05
Yes Bank 163.85 170.30 -6.45 -3.79 404.00-146.75
IndusInd Bank 1439.90 1476.55 -36.65 -2.48 2,038.00-1,333.15
I O C L 147.60 150.60 -3.00 -1.99 177.20-105.25






Technical Outlook for Nifty and Bank Nifty Future for the week.

Nifty Chart 13th-17th May
Nifty Chart 13th-17th May

Nifty Future Weekly Outlook - OHLC-(11671.10/11695.00/11283.00/11307.20)
Primary Trend Nifty Future: Volatile (Bias Down) – Expected Volatility of 13.5499% (Range of 212 Points)
Range Bound Trend: All up Moves Initiates Profit Booking (Sale) @ 11415 whereas All Down Moves Initiates Short Covering (Buy) @ 11160

If Nifty future moves Above 11340 then you should Buy with 1st Target of 11500 during the day or any point during the week by Trailing the Stop Loss from 11150- 11250- 11310- 11410- 11510- 11560 FOR the Target of 11570- 11650- 11750

If Nifty future moves Below 11240 then you should Sell with 1st Target of 11080 during the day or any point during the week by Trailing the Stop Loss from 11425- 11325- 11265- 11175- 11075- 11025 FOR the Target of 11000- 10930- 10830
Bank Nifty Chart 13th-17th May
Bank Nifty Chart 13th-17th May


Bank Nifty Future Weekly Outlook - OHLC-(29689.40/29945.85/28902.00/29088.15)
Primary Trend Bank Nifty Future: Volatile (Bias Corrective) - Expected Volatility of 17.9038% (Range of 720 Points)
Range Bound Trend: All up Moves Initiates Profit Booking (Sale) @ 29362, whereas All Down Moves Initiates Short Covering (Buy) @ 29715

If Bank Nifty Future moves Above 29170 then you should Buy with 1st Target of 29560 during the day or any point during the week by Trailing the Stop Loss from 28700- 28950- 29110- 29350- 29600- 29750 FOR the Target of 29760- 29960- 30200

If Bank NiftyFuture moves Below 28900 then you should Sell with 1st Target of 28525 during the day or any point during the week by Trailing the Stop Loss from 29375- 29125- 28975- 28725- 28475- 28325 FOR the Target of 28315- 28125- 27875


Conclusion:


It is very much clear that the Indian stock market would remain volatile till Lok Sabha Election result. Traders are advised to remain cautious and track the news of US-China Trade policy, corporate earnings and inflation data for the next week.

Also, read the article How to protect your Portfolio and Make Money from the Stock Market Crash
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Happy Investing!


Finogyan Team


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Indian Stock Market: Nifty and Bank Nifty in bear grip Indian Stock Market: Nifty and Bank Nifty in bear grip Reviewed by Finogyan on May 11, 2019 Rating: 5

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