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Last Updated : Jan 25, 2020 10:24 AM IST | Source: Moneycontrol.com

Week in 5 charts: Indices break two-week upward momentum after hitting record highs

Last week, the Sensex lost 332.18 points (-0.79 percent) to end at 41613.19, while the Nifty shed 104.05 points (0.80 percent) to end at 12248.3.


The market for the week ended January 24 broke the earlier two-weeks consecutive gaining momentum as benchmark indices closed 0.8 percent lower, amid earnings from India Inc and no major news on the global front.

After remaining under pressure for the first three days of the week, the market gained some momentum in the past two days and erased some of its weekly losses but ended lower for the week.

The 30-share pack Sensex touched a fresh all-time high of 42,273.87, while Nifty also hit a fresh record high of 12,430.50 on January 20.

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"Technically, the Nifty negated its formation of lower highs after four trading sessions which indicate strength. It formed a Bearish Engulfing on a weekly scale. Momentum oscillator RSI also took support around its recent swing lows of 44–46 zones and turned northwards," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Private.

"Going forward, if the Nifty holds above 12,150 levels, then an up move towards 12,300 and 12,350 cannot be ruled out. However, major support remains intact at 12,100 and 12,050 levels. Next week would be an elongated week as markets would be open on the Budget day (February 1). The market would trade cautiously as a lot of macro data on the global and domestic front would be announced along with the Union Budget," he added.

On the global front, investors remained cautious on the back of the outbreak of deadly coronavirus.

The virus has killed 25 people in China and infected more than 800, the government said on January 24, as the World Health Organisation (WHO) declared it an emergency but stopped short of declaring the epidemic of international concern.

"We reiterate our cautious view on the Indian markets given the stretched valuation and muted start to the earnings season. The expectations are high from the budget as market participants pin hopes for additional measures from the government to revive the economy," said Ajit Mishra, VP - Research, Religare Broking.

"This is likely to drive momentum in the markets in the coming sessions. Further, the earnings announcement from corporates would also induce stock-specific volatility," he added.

In the past week, the Sensex lost 332.18 points (-0.79 percent) to end at 41613.19, while the Nifty shed 104.05 points (-0.80 percent) to end at 12248.3.

Foreign institutional investors (FIIs) bought equities worth Rs 1,790.6 crore, while Domestic Institutional Investors (DIIs) sold equities worth of Rs 2,620.48 crore.

The Indian rupee ended 25 paise lower at 71.33  on January 24 against its January 17 closing of 71.08.

The BSE small-cap index was up 0.93 percent, the BSE mid-cap index added 0.72 percent, while the BSE large-cap index was down 0.65 percent in the past week.

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On the BSE, Reliance Industries lost the most in terms of market value. On the other hand, Bharti Airtel added the most in terms of market value, followed by L&T and Infosys.

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The Nifty Energy index underperformed the sectoral indices with a loss of 2.5 percent during the week.

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Disclaimer: Reliance Industries is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments 

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First Published on Jan 25, 2020 10:09 am
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