Nifty will head higher as long as it remains above 7,600
The positive momentum of past three weeks was carried forward this week as well. Indian indices closed higher in the range of 1% to 2%. Last week, we had mentioned Nifty has to stay above 7,550 for the index to head higher. For the three day week ended 23 March 2016, the index stayed much above this level. The trends of the major indices in the Indian stock markets over the week’s trading are given in the table below:
The week began with the Nifty opening marginally higher and managed to stay above Friday’s close for the entire session on Monday. Nifty closed 1.31% higher at 7,704. Finance Minister Arun Jaitley on Sunday defended the government's decision to slash interest rates on PPF and national small savings, saying this will help transform the economy from a "sluggish" state to an "efficient" one. India's current account deficit (CAD) dropped to $7.1 billion or 1.3% of GDP in the third quarter of 2015-16 on account of narrowing trade deficit, Reserve Bank of India (RBI) said on Monday.
On Tuesday, Nifty managed to stay above the support of 7,600 and closed higher, although marginally. Nifty closed at 7,715 (up 0.14%). Weak global cues affected the positive momentum. The market was trading under the shadow of news of potential US rate hike, coupled with negative Chinese indices and profit booking.
On Wednesday, Nifty traded in the negative for almost the entire session but managed to close flat with a positive bias. Nifty closed at 7,717 (up 0.02%). The top loser on the index, Reliance Industries, fell after media reports suggested that its telecom arm Reliance Jio Infocomm might delay the launch of its much-awaited mobile broadband service (4G) to the end of this calendar year.
Global credit rating agency Standard & Poor's (S&P) reportedly said in a latest report on Indian banks that stand-alone credit profiles and ratings on some PSU banks could get lowered, given their weakening asset quality and capitalisation.
The stock market remains shut on Thursday, 24 March 2016, on account of Holi and again on Friday, 25 March 2016, on account of Good Friday. Most global stock markets will be closed on account of Good Friday.