Union Budget outcomes along with US Treasury yield and other key economic indicators that will decide the course of the stock market next week after it witnessed intense sell-off this week amid heavy volatility.
The US Fed’s comment on rate hike spooked investors while higher spike in US Treasury yield caused heavy selloff in US tech stocks along with rising geopolitical tensions between Ukraine and Russia denting investors’ sentiments. .
That led to crude oil prices reaching $90 per barrel for the first time in seven years due to supply side issues and reviving global economy. This in turn led to heavy volatility last week in the Indian markets that saw continued sell-off from the first day of the week as the benchmark index Nifty50 made a low at 16836.80, down 2.9 percent over the previous week.
Index heavyweight stocks like Reliance Industries, HDFC Bank, ICICI Bank and Infosys were among the top contributors to benchmark losses while sectoral side IT, metal and Realty indices were among the top losers last week.
Technically, the Nifty50 index has confirmed the breakdown of the Bearish Engulfing Candlestick pattern on a weekly chart. However, on the daily scale the index has taken a good support at 78.6 percent RL of its prior rally. A momentum indicator Stochastic & MACD is also trading with negative crossover, which adds bearishness in prices.
At present, the Nifty index has support at 16830 levels while resistance comes at 17450 levels on a weekly basis, either side breakout may suggest the further direction.
Top Gainers and Losers
Nifty gainers this week | CNBC TV-18
• Cipla rose over 7 percent this week as Q3 results were above street estimates
• Axis Bank shares posted strong Q3 results, stocks surged over 7 percent in one week.
• Maruti Suzuki hit 52-week high post Q3 results
• Rise in global crude oil improved outlook of ONGC. Stock surged 3 percent in one week.
Nifty losers | CNBC TV18
• Loser stocks were largely due to profit-booking
(The writer is Research Analyst, Choice Broking)
