Market rose by 2.1 percent during the week and scaled new peak with Sensex/Nifty 50 topping 55,000/16,500 mark, respectively. Global support to rally is intact as Dow and S&P set yet another record high.
The market is witnessing strong participation from the retail investors amidst positive sentiments with high frequency indicators showing robust revival in economic conditions. FPIs inflow also remained strong during the week supporting rally.
On the macro front, inflation at 5.6 percent in July moved back to RBI’s target level, thus giving comfort to the Centre to continue with its loose monetary policy and accommodative monetary stance. On sectoral front, sharp buying was witnessed in IT stocks as IT index up by 4 percent topping the indices chart. Meanwhile, broader indices underperformed amid concerns over BSE’s new surveillance rule for mid and small cap stocks.
Key crucial macro data for next week
India’s WPI inflation, trade data, US industrial production and FOMC Minutes, Japan-Q2CY21 GDP data. Besides macro data, investors should keep a close eye on the coronavirus situation and pace of vaccination.
Nifty at new lifetime high
Technically, the week gone by was very energetic for market players as in the initial trading session of the week, the benchmark index faced some weakness. Subsequently, the bulls came in and the benchmark index Nifty reached a new lifetime high at 16,543.60.
Apart from taking positive clues from the Asian market, hopeful recovery in the manufacturing industries also supported the market sentiments. Hence, we expect upside momentum to continue for the coming week. If there is any dip, it would be considered as buying opportunities. On the downside, the support comes around 16,350/16,200 levels while upside resistance may come around 16,650/16,800 levels.
Top Gainers
Tech Mahindra: The stock hit an all-time high post-quarterly results. Investors cheered over the double-digit growth guidance by company for FY22 and prospects of good opportunities in 5G
IT stocks: A majority of IT stocks hit all-time high in Friday (August 13) session, viz: HCL Tech and TCS were among the top weekly gainers in the IT index.
Power Grid: The stock jumped on fresh equity infusion in JV company
Bharti Airtel: The stock soared as investors keep stock on buying radar over positive future outlook
Top Losers
Eicher Motors: It fell despite meeting quarterly result estimates; CEO exit and supply woes keeps stock under pressure
Shree Cement: The stock fell post-weak performance in June quarter
Hero Motocorp: The stock plunged as company’s third quarter result misses estimates.
(Ankit Pareek is Research Analyst at Choice Broking-full-service broker, a part of Choice Group)
