Stocks
Nifty, Sensex may give up some gains – Weekly closing report
If Nifty goes down next week, support lies between 8,000 and 7,950 
 
The S&P BSE Sensex closed the week that ended on 5th September at 27,027 (up 389 points or 1.46%), while the NSE's CNX Nifty ended at 8,086.85 (up 133 points or 1.67%). Previous week, we had mentioned that the Nifty, Sensex is showing no signs of fatigue. The week began with indices continuing to close at its new all-time high on each of the first three days of the week.
 
Nifty closed at 8,028 (up 73 points or 0.92%) on Monday. The move on the bourse was on the back of the news of Japan to invest $33.5 billion in infra projects in India, over a period of five years to build smart cities and infra projects. Seasonally adjusted HSBC India Purchasing Managers' Index (PMI) dipped slightly from July's 17-month high of 53 to 52.4 in August. The latest PMI data highlighted a tenth consecutive monthly improvement in operating conditions in August.
 
The index continued to rise higher on Tuesday and closed almost close to the day’s high. Nifty closed at 8,083 (up 55 points or 0.69%). Oil Minister Dharmendra Pradhan has said there were good signals from the international market and his ministry will take appropriate steps to bring deregulation of diesel prices.
 
Eight core industries output has increased 2.7% in July 2014, showing moderation in growth from 7.3% increase in June 2014. The preliminary data on India's balance of payments also showed that foreign direct investment in India rising to $8.2 billion in the quarter ending June 2014, from $6.5 billion in the quarter ending June 2013. India's current account deficit narrowed sharply to $7.8 billion or 1.7% of GDP in the quarter ended June 2014, from $21.8 billion or 4.8% of GDP in the June 2013 quarter.
 
Positive economic data from the US and China further boosted the ongoing upmove. Nifty closed at 8,115 (up 32 points or 0.39%). The latest survey released by Markit Economics showed that growth in India's service sector activity slowed in August 2014. Adjusted for seasonal influences, the headline HSBC India Services Business Activity Index posted 50.6 in August, down from 52.2 in July.
 
The Institute for Supply Management said its US manufacturing activity index rose to 59 in August, the strongest since March 2011. July construction spending was at its highest level in over 5-1/2 years. The HSBC China services Purchasing Managers' Index (PMI) rose to a 17-month high of 54.1 in August from 50 in July. 
 
Five days of upmove on the Nifty came to pause on Thursday as Nifty closed lower. Nifty closed at 8,096 (down 19 points or 0.23%). Ratings agency Standard & Poor’s (S&P) has expressed “cautious optimism” for India’s sovereign rating. S&P might scale up the outlook on its India rating from negative to stable instead of effecting an upgrade.
 
The weakness on the bourse continued on Friday, as the Nifty continued to move with a declining trend. Nifty closed at 8,087 (down 9 points or 0.11%).
 
For the week, among the other indices on the NSE, the top two performers were Nifty Midcap 50 (4%) and Midcap (4%) while the only worst performer was FMCG (1%).
 
Among the Nifty stocks, the top five stocks for the week were N M D C (10%); Bharti Airtel (8%); Cipla  (8%); Hero MotoCorp (6%) and Larsen & Toubro (6%) while the top five losers were BHEL (8%); United Spirits (5%); Tata Motors (4%); HDFC (2%) and Hindalco (1%).
 
 Of the 1,461 companies on the NSE, 943 companies closed in the green, 490 companies closed in the red while 28 companies closed flat.
 
Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:
 

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Nifty, Sensex may be headed down – Friday closing report
Nifty will be headed to 8,000 if it goes below 8,050
 
We had mentioned in Thursday’s closing report NSE's CNX Nifty rallies may not sustain even if new highs are hit. On Friday, although the index opened higher, it showed a declining trend after the first 45 minutes of range-bound move on the bourse.
 
S&P BSE Sensex opened at 27,127 and moved lower to hit a low of 26,921 after hitting a high of 27,179. Sensex closed at 27,027 (down 59 points or 0.22%). Nifty opened at 8,100 and moved from the level of 8,123 to 8,050 and closed at 8,087 (down 9 points or 0.11%). NSE recorded a higher volume of 112.48 crore shares. India VIX fell 1.09% to close at 12.9350.
 
Australia's Prime Minister Tony Abbott said that he would sign a civil nuclear deal with Indian counterpart Prime Minister Narendra Modi, thus clearing the way for uranium sales to India.
 
Wockhardt (13.17%) was the top gainer in ‘A’ group on the BSE. It recently announced that two of its anti-infective drugs, WCK 771 and WCK 2349, have received qualified infectious disease product (QIDP) status from the US health regulator. QIDP status allows fast-track review of the drug application by the US Food and Drug Administration. It also said that this is the first instance of an Indian pharmaceutical company receiving QIDP status.
 
National Aluminium (8.73%), hit its 52-week high today, was among the top two gainer in ‘A’ group on the BSE.
 
Jaiprakash Associates (10.34%) continues to be the top loser today also in the ‘A’ group on the BSE on rumours that the promoters were selling their shares. The stock hit its 52-week low today.
Bajaj Auto (1.46%) was again the top gainer today in Sensex 30 pack. 
 
Larsen & Toubro (1.27%) was among the top two gainers in the Sensex 30 pack has won a Rs5,100 crore supercritical power plant order from MP State Utility, 1,320 MW plant to be executed on EPC basis under stringent schedule.
 
Hero MotoCorp (2.16%) which hit its 52-week high on Thursday, corrected today and was the top loser in the Sensex 30 stock.
 
US indices closed Thursday marginally down. Market awaits the influential US  non-farm payroll data for August which is due later today.
 
Except for Shanghai Composite (0.85%), Jakarta Composite (0.23%) and NZSE 50 (0.48%) all the other Asian indices closed in the red. Seoul Composite (0.33%) was the top loser.
 
European indices are trading in the red. US Futures too are trading lower.
 
The European Central Bank (ECB) unexpectedly moved to cut its main policy rates and announced additional measures after a monetary policy review on Thursday.

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Nifty, Sensex will continue to face selling at higher levels – Thursday closing report
Nifty rallies may not sustain even if new highs are hit
 
We had mentioned in Wednesday’s closing report that NSE's CNX Nifty will make attempts to make new highs, but will come under selling pressure. On Thursday, for the first time, after nine consecutive days of positive closing for the S&P BSE Sensex, and after five consecutive days of positive closing on the Nifty, the indices closed in the negative.
 
Sensex managed to open marginally in the positive at 27,165, while the Nifty opened at 8,114. Hitting the day’s high almost at the same level as the opening, the benchmarks edged lower. Sensex hit a low of 26,972 and closed at 27,086 (down 54 points or 0.20%), while Nifty hit a low of 8,061 and closed at 8,096 (down 19 points or 0.23%). The NSE recorded a higher volume of 107.67 crore shares. India VIX fell 2.35% to close at 13.0775.
 
Among the other indices on the NSE, the top five gainers were Pharma (0.46%), Dividend Opportunities (0.34%), Midcap (0.23%), FMCG (0.18%) and Auto (0.07%) while the top five losers were Realty (4.00%), Metal (1.60%), PSU Bank (1.13%), Infra (0.99%) and Smallcap (0.80%).
 
Of the 50 stocks on the Nifty, 18 ended in the green. The top five gainers were Bajaj Auto (3.63%), Hero MotoCorp (2.42%), Power Grid (2.09%), NTPC (1.79%) and HDFC (1.58%). The top five losers were DLF (8.15%), Bhel (4.29%), Jindal Steel (3.93%), Hindalco (3.28%), Tata Steel (2.96%).
Of the 1,597 companies on the NSE, 537 companies closed in the positive, 1,016 companies closed in the negative while 44 companies closed flat.
Ratings agency Standard & Poor’s (S&P) has expressed “cautious optimism” for India’s sovereign rating. S&P might scale up the outlook on its India rating from negative to stable instead of effecting an upgrade.
 
India's Intelligence Bureau (IB) has reportedly issued an all-India alert after al-Qaeda leader Ayman al Zawahri announced the formation of an Indian branch of his militant group.
UPL (7.81%) hits its 52-week high today and was the top gainer in ‘A’ group on the BSE. Post stock split, Jammu & Kashmir Bank (6.87%) was among the top two gainers in ‘A’ group on the BSE. The company had announced a stock split in the ratio of 1:10.
 
After 18 consecutive days of trading in the negative, when Bhushan Steel stock price crashed as much as 76% (from Rs380.75 on 5 August 2014 to Rs91.50 on 2 September 2014), the stock has closed in the positive today for the second consecutive session. Today, it rose 5% and was among the top four gainers in the ‘A’ group on the BSE.
 
Jaiprakash Associates (17.60%) was the top loser in the ‘A’ group on the BSE on rumours that the promoters were selling their shares. The company has clarified that one of the promoters holding 72.36 crore shares, constituting 29.75% of its share capital, has sold only 1.45% of such shareholding and continues to hold 68.83 crore shares, constituting 28.30% of the company's share capital. This small shareholding has been sold by the promoter company to meet its requirement of funds (including for social cause).
 
Bajaj Auto (3.25%) was the top gainer in Sensex 30 pack. It has registered 8% growth in total sales during August to 3.36 lakh units. It expects to sell 4 lakh units in September.
 
Mahan Coal, a joint venture between Hindalco Industries and Essar Power, which has invested Rs20,000 crore for setting up end-use plants, is missing from the list of 46 blocks for which the government requested the Supreme Court for an exemption. Hence, the chances of a de-allocation have risen. Hindalco (3.40%) was among the top two losers in the ‘A’ group on the BSE.
 
US indices had a mixed closing on Wednesday. The US economy expanded at a modest to moderate pace over the past six weeks as a booming auto industry and tourism continued to drive growth, the Federal Reserve said in its Beige Book on Wednesday.
 
Asian indices showed a mixed performance. Shanghai Composite (0.80%) was the top gainer while Jakarta Composite (0.36%) was the top loser. The Bank of Japan kept its record stimulus unchanged today. European indices were trading in the green. US Futures too were trading higher.
 
German factory orders surged the most in more than one year in July, after weak demand in the second quarter contributed to an economic contraction. Orders, adjusted for seasonal swings and inflation, rose 4.6% from June, when they slid a revised 2.7%, the Economy Ministry in Berlin said today. That's the biggest increase since June 2013.

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