Bullish mood – Weekly closing report

As long as Nifty continues to remain above 8,500, the rally may continue


The S&P BSE Sensex closed the week that ended on 5th December at 28,458 (down 236 points or 0.82%), while the NSE's CNX Nifty ended at 8,538 (down 50 points or 0.58%).


From here, as long as, Nifty continues to remain above 8,500, the rally may continue. Previous week, we had mentioned that Nifty may weaken a bit mid-week, but the trend is higher.

After a weak opening on Monday, the 50-share Nifty moved sideways for a long time before it was pulled further lower and ended in the red. Nifty closed at 8,556 (down 32 points or 0.38%). The news of the day was the November HSBC manufacturing PMI for India which stood at its 21-month high at 53.3 compared to 51.6 in October. Price of non-subsidised cooking gas was cut by a steep Rs113 per cylinder and that of jet fuel by 4.1% as international oil rates slumped to multi-year lows.

Petrol prices were reduced on Sunday while Reserve Bank of India (RBI), last Friday eased gold import norms in a bid to curb smuggling of the yellow metal. The RBI, in a circular, said that the government of India has decided to withdraw the 20:80 scheme and restrictions were placed on import of gold.

On Tuesday, the RBI in its monetary policy review kept its main lending rate viz. the repo rate unchanged at 8%. RBI said after a monetary policy review that if the current inflation momentum and changes in inflationary expectations continue, and fiscal developments are encouraging, a change in the monetary policy stance is likely to happen early next year, including outside the policy review cycle. Nifty closed at 8,525 (down 31 points or 0.36%).

Government data released on Monday showed the output of eight core industries, having a combined weight of 37.9% in the Index of Industrial Production (IIP), galloped 6.3% in October 2014.

RBI’s easing of imports curbs resulted in gold posting this year's biggest single-day rise of Rs840 on Tuesday, and it regained the Rs27,000 per 10-gram level after a gap of over one month.

After moving in a narrow range on Wednesday, Nifty closed higher with marginal gains.


Nifty closed at 8,538 (up 13 points or 0.15%). Indian services companies rose from 50 in October to 52.6 in November, the seasonally adjusted HSBC India Services PMI Business Activity Index. Service sector activity grew in November, as new business rose for the seventh month running.

US indices were positive on Wednesday and most of the Asian indices were positive on Thursday. These factors pulled the Nifty higher to hit its new lifetime high. However, the index could not sustain at the level and immediately started giving up gains. Nifty closed at 8,564 (up 27 points or 0.31%). The finance ministry announced the setting up of a high-level committee to interact with trade and industry on tax laws, after trading hours on Wednesday. World food prices were stable for the third consecutive month in November. The Food and Agriculture Organisation's price index averaged 192.6 points in November, barely down from 192.7 in October.

On Friday, Nifty closed at 8,538 (down 26 points or 0.30%) reversing almost the entire gain of Thursday. SEBI has found 22 public sector firms including giants like ONGC, Coal India and IOC to have violated various capital market guidelines, while banking major SBI has filed for settlement of a case against it with the regulator.

Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:


ML Top sector


ML Worst sector








Telecom Services




Oil & Gas


Auto Components




Foods & Beverages








2 years ago

Now a days ur prediction about market is moving against ur anticipation.Similar to other market pundits you are also giving prediction.Nobody can judge market daily movement.Only market manipulators and speculators gain.My suggestion is BAN derivatives in individual stocks.allow only in index.Indian euity market is worst casino in the world.

Urvish Chitalia

2 years ago

Your Friday closing report predicts a sharp decline in case of negative new flow. The weekly report talks of a bullish mood. Can you please explain this difference of opinion? Have I not understood something here?




In Reply to Urvish Chitalia 2 years ago

To be on the safer side! :)

Nifty, Sensex may decline sharply on slightly negative news– Friday closing report

Nifty is on a downtrend which may reverse if its closes above 8,570


On Thursday we had mentioned that if the NSE’s CNX Nifty closes below 8,540, a short decline would be on the cards.  The 50-stock Nifty on Friday reversed almost the entire gain made in the previous day and closed below 8,540. After a range bound session, where the benchmark was trading slightly higher than yesterday’s close, the index started drifting lower in late afternoon.

The S&P BSE Sensex opened at 28,605, moved in the range of 28,409 and 28,652, and closed at 28,458 (down 105 points or 0.37%).  Nifty, which opened at 8,584, moved between 8,524 and 8,588 and closed at 8,538 (down 26 points or 0.30%). The NSE recorded a volume of 93.57 crore shares. India VIX fell 3.98% to close at 11.9500.

India's Ministry of Railways today announced the setting up a High Level Committee (HLC) to identify factors, issues and avenues for improving financial health of Indian Railways. The HLC will examine the efficacy and sufficiency of the existing revenue structure in Indian Railways and avenue for raising revenues. The HCL will suggest ways and means for monetization of the resources of Indian Railway.

Market regulator SEBI has found 22 public sector companies including giants like ONGC, Coal India and IOC to have violated various capital market guidelines, while banking major SBI has filed for settlement of a case against it with the regulator, the Parliament was informed today. Others include SAIL, ITDC, HMT, Shipping Corporation, NTPC, NHPC, STC, Nalco, EIL, REC and Neyveli Lignite.

Defence Minister Manohar Parrikar in a written statement to Rajya Sabha on 2 December 2014 said that a total of 41 proposals for an indicative cost of Rs119,719.53 crore have been cleared by the defence acquisition council since June 2014.  Pipavav Defence (9.99%) one such player in the sector was among the top three gainers ‘A’ group on the BSE.

Suzlon Energy (4.27%) was among the top three losers in the ‘A’ group on the BSE. ITC (2.27%) again was the top gainer in the Sensex 30 pack. The news of the government to take wider consultations before bringing any amendments to existing laws to restrict the sale of loose cigarettes helped the stock to rise higher. Dr Reddy’s Lab (2.23%) was the top loser in Sensex 30 stock.

On Thursday, US indices closed flat with a negative bias. US jobless claims in the week ended 29th November fell by 17,000 to 297,000, the Labour Department said yesterday.

Except for Taiwan Weighted (0.20%), all the other Asian indices closed in the green. Shanghai Composite (1.32%) was the top gainer. China's banking sector regulator has issued draft rules for banks are aimed at reducing funding costs for businesses as the economy slows.

European indices were trading in the green. US Futures were trading marginally higher.


European Central Bank President Mario Draghi said on Thursday the region's central bank will reassess stimulus next quarter. Draghi's comments damped speculation the central bank was poised to start a program of sovereign-debt purchases known as quantitative easing after policy makers kept interest rates unchanged.

In Europe, European Central Bank (ECB) left its key interest rate unchanged at 0.05% after a monthly monetary policy review on Thursday.

Germany's central bank Bundesbank cut the nation's growth forecast for the current and coming years. The Bundesbank now foresees German adjusted growth in gross domestic product to be 1.4% in 2014, down from a forecast of 1.9% in June. It projects a growth rate of 0.8% in 2015, compared with 1.8% previously, and a rate of 1.5% in 2016, down from 1.7%.


Doctors must write generic drugs name in capital letters

Every physician will prescribe drugs with generic names in legible and capital letters and also ensure that there is a rational prescription and use of drugs


The union government has amended rules in Indian Medical Council Regulations 2002, directing physicians to prescribe drugs with generic names in legible and capital letters, the Lok Sabha was informed Friday.


While agreeing with concerns of some parliamentarians that illegible prescription by doctors may lead to serious implications and even death in certain cases, Health Minister JP Nadda, told Lok Sabha that government has taken corrective measures.


“The Central government has approved to amend Indian Medical Council Regulations, 2002, providing therein that every physician should prescribe drugs with generic names in legible and capital latter and he/she shall ensure that there is a rational prescription and use of drugs,” Nadda said.


Replying to a question, he said Medical Council of India and state medical councils are empowered to enquire into professional conduct of any doctor, he said.



Parul Aggarwal

2 years ago





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