Kshitij Anand Moneycontrol News
Indian equity market moved in a narrow range last week as bears tried to regain control of D-Street in almost three out of four trading sessions. The Nifty50 index rose marginally by 0.2 percent while the S&P BSE Sensex gained 0.23 percent in the holiday shortened week.
Even though benchmark indices struggled to inch higher there was a lot of action in individual stocks, especially in the broader markets.
Nearly 19 stocks in the S&P BSE Smallcap index rose between 10 percent and 40 percent for the week ended August 24 which includes names like Noida Toll Bridge which gained 45 percent, followed by Aptech which rose 36 percent, and Career Point was up by 17 percent in the same period.
The S&P BSE Smallcap index closed 0.18 percent higher while the S&P BSE Midcap index was up by 0.29 percent. The S&P BSE 500 index gained 0.16 percent for the week ended August 24.
Strong gains were seen in the midcap stocks led by a rally in pharma stocks. Wockhardt rose 10 percent followed by Divi’s Laboratories gained 6 percent in a week.
In the BSE 500 index, almost 5 stocks rose over 10 percent which includes names like Asahi India Glass, Manappuram Finance, Den Networks, Future Consumer and Wockhardt among others.
The coming week is likely to remain volatile as markets would react to the outcome of Jackson Hole meeting, India GDP data, F&O expiry as well as monthly auto sales numbers
Traders who were bracing for a steady week may well have to adjust their strategy but the good news is that Nifty50 is back above key support levels. The index closed above 5-days exponential moving average (DEMA), and around 13-DEMA placed at 9,856.
The immediate hurdle for the index is placed around 20-DEMA placed around 9870. But, the Nifty50 is likely to open higher on Monday amid strong global cues and should surpass this level in an opening tick.
“Nifty is currently at favourable price regime given the momentum build-up during last two trading session, which is expected to end the consolidation phase going forward,” Dinesh Rohira, Founder & CEO, 5nance.com told Moneycontrol.
“However, Nifty has to close above its crucial resistance facing from its 20-days EMA to continue with the current uptrend. The Index is currently facing its immediate resistance from the 20-days EMA at 9,870 level and the support level is currently placed at 9,793 level,” he said.
The foreign institutional pulled out over Rs 13000 crore from Indian equity markets so far in the month of August. They remained net sellers for the 10th consecutive session in a row on Thursday, but for the year 2017, they are still net buyers of Indian stocks.
“On the whole FII’s have been net buyers of stocks this year to the tune of nearly Rs 45,000 crore. August is the second month after Jan which is witnessing outflows,” Sahil Kapoor, Chief Market Strategist, Edelweiss Broking told Moneycontrol.
“However, we believe that it is only an aberration in what seems a continuous flow of FII funds into equities,” he said.
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