Stock market weekly roundup: Charts indicate uncertainties, volatility ahead

Stock market weekly roundup: Charts indicate uncertainties, volatility ahead

This week, Nifty remained sluggish as 40 stocks closed on the negative side

Sumeet BagadiaUpdated: Saturday, May 07, 2022, 10:52 PM IST
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Crossing below 16,200 levels would confirm complete change in trend on the negative side./ Market/ representational image |

Indian stock market is likely to remain highly volatile till May 26 from a time cycle prospect while the Doji candle on daily chart confirm uncertainties ahead.

The benchmark Nifty index has closed much below the 50 Day Moving Average (weekly) which indicates 16,800 would be acting as resistance followed by 17,000 levels. Crossing below 16,200 levels would confirm complete change in trend on the negative side. On the other hand, Bank Nifty has support at 34,000 followed by 33,800 while resistance is seen at 35,500 level on weekly basis.

This week, Nifty remained sluggish as 40 stocks closed on the negative side while only 10 stocks closed higher as compared to previous week. India VIX, that measures the volatility index, jumped 9.45 percent overall in the week to end at 21.25.

The week started on a negative note following weak global cues triggered by geo-political tension, concerns over inflation, and monetary tightening. The sell-off in the domestic market was further escalated by the surprise rate hike of 40 basis points by RBI.

As a result, the yield on India’s 10-year govt bond jumped 31 bps to close the week at 7.45 percent which is the highest rate seen in the past three years.

Sector-wise, only Nifty CPSE ended with a marginal gain of 1.61 percent on the other hand Nifty Realty were the prime laggards with loss of 8.02 percent along with Pharma , IT and FMCG losing between 2 to 4 percent.

Top gainers

ITC: ITC's stock price surged on the back of upbeat earnings expectations due to improving cigarette performance

Coal India: The share price of Coal India is rising because it is expected to ramp up production to address supply shortages.

Top Losers

Eicher Motors: Eicher Motor's share price fell amid sector-wide selling

Titan: Titan's stock price plummeted following disappointing results

Bajaj Finance: The share price of Bajaj finance has fallen on the expectation of NIM compression in the future.

(Sumeet Bagadia, Executive Director,Choice Broking.

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