Market Next Week: Broader indexes recorded their worst performance in two months. It declined by 3-6 percent. They underperformed the major indexes amid mixed global markets, weak third-quarter corporate earnings estimates and concerns over India’s economic slowdown. This week, BSE Sensex fell 1,844.2 points or 2.32 percent to close at 77,378.91. While the Nifty 50 index fell 573.25 points or 2.38 percent to close at 23,431.50. The BSE large-cap index fell 3.2 percent. The BSE Mid-Cap index fell by 5.7 per cent and the BSE Small-Cap index fell by 6 per cent.
Among sectoral indices, only BSE IT index registered a gain of 1 per cent. While all other indices closed in the red. The BSE Power index fell by nearly 9 per cent. The BSE Realty index fell by more than 7 percent. The BSE PSU index fell by 7 percent. Both BSE Capital Goods and Metal indices fell by 5 per cent.
Foreign institutional investors (FIIs) sold equities worth Rs 16,854.25 crore during the week. While domestic institutional investors (DIIs) bought equities worth Rs 21,682.76 crore.
In the market decline, FIIs sold shares worth Rs 2,255 crore, DIIs bought shares worth Rs 3,962 crore.
Opinion of Shrikant Chauhan of Kotak Securities
Shrikant Chauhan said “Indian equity markets underperformed most global markets. The Sensex and Nifty indices fell 2% each this week. The fall in midcap and small-cap stocks was more severe. The BSE Midcap index and Smallcap index fell by 5% each. A decline of 5 per cent was seen in almost all major sectors during the week, including BSE Capital Goods and BSE Realty. A weekly decline of more than Rs.
“In contrast, the BSE IT index gained following the TCS results. TCS’s revenue remained flat and EBIT margin grew by 40 bps. This is broadly in line with our estimates. The deal for TCS is expected to increase in TCV in the quarter. And grew rapidly on an annual basis.”
The BSE small-cap index saw a decline of 6 per cent. In which stocks like Jai Corp, KEC International, Inox Wind, Skipper, Oriental Rail Infrastructure, Garware Hi-Tech Films, Blue Star and PCBL fell between 15-23 percent. However, stocks like Spandana Spurthi Financial, PTC Industries, Coffee Day Enterprises, Vijaya Diagnostic Center and Pokarna rose 10-19 per cent.
Just Dial Q3 Results- Company’s net profit increased by 43% to Rs 131 crore, revenue increased by 8%.
How might Nifty move next week?
HDFC Securities’ Nagaraj Shetty’s market outlook for Monday, January 13
Nagaraj Shetty said that Nifty has broken below the immediate support level of 23500. But below the support there was a lack of enthusiasm for intense selling. Nifty is currently seen inside a converging triangle on the daily chart. Now an attempt is being made to breakout downwards from the lower end of this triangle.
After falling in the last few weeks, Nifty formed a long bearish candle on the weekly chart this week. According to the weekly closing, the weekly support of the ascending intermediate trend line has been broken on the downside.
The underlying trend of Nifty remains negative amid volatile activities. In this, the next support on the downside can be seen around 23260-23000 levels. In this, immediate resistance is seen at the level of 23600.
LKP Securities’ Rupak Dey’s market outlook for Monday 13th January
Rupak Dey said the index closed below 23,500 for the first time in several days. Due to this, the pressure of recession is continuously increasing. The index remains below the important level of 50 EMA. This confirms the bearish trend. Furthermore, the RSI remains in a negative crossover. Which is indicating weak momentum. Short term sentiment remains soft in this. There is a possibility of a decline in the index to 23,300 or 23,000. Whereas upward resistance can be seen at 23,550-23,600.
(Disclaimer: The views and investment advice expressed on Moneycontrol.com are the personal views and opinions of investment experts. Moneycontrol advises users to consult certified experts before taking any investment decision.)