Nifty will remain bullish as long as it does not end the coming week below 8,200
The S&P BSE Sensex closed the week that ended on 16th January at 28,122 (up 664 points or 2.42%), while the NSE’s CNX Nifty ended at 8,514 (up 229 points or 2.77%).
From here, Nifty will remain bullish as long as it does not end the coming week below 8,200. Previous week we had mentioned that benchmarks currently directionless.
On Monday, the Nifty moved in a haphazard manner, but finally managed closing in the green for the third consecutive session. Nifty closed at 8,323 (up 39 points or 0.46%). Market sentiments were initially affected by the concern that Europe's stimulus plans may not solve the euro region's economic woes.
On Tuesday, although Nifty managed to move in the green for major part of the session, towards the end of the session, it was pulled lower and closed near the day’s low at closed at 8,299 (down 24 points or 0.28%).
India's index of industrial production (IIP) increased at five-month high pace of 3.8% in November 2014, recovering from the sharpest pace in three-years at 4.2% recorded in October 2014. The annual rate of inflation based on the combined consumer price indices for urban and rural India rose to 5% in December 2014 from nine-year low of 4.4% in November 2014, while snapping consistent decline for last four sequential months.
On Wednesday, the loss on the Nifty continued. Nifty closed at 8,278 (down 22 points or 0.26%). Data showed inflation based on WPI stood at 0.11% in December 2014, as compared to zero in November 2014.
The World Bank had said that economic reform measures taken by the Indian government, after coming to power in May last year, may result in its catching up with China’s growth in the year 2016-17.
On Thursday, before market opening, a surprise rate cut from Reserve Bank of India (RBI) resulted in the benchmarks recording huge gains. Nifty closed at 8,494 (up 217 points or 2.62%). Data announced after market hours on Thursday showed trade deficit narrowed to 10-month low of $9.4 billion in December 2014, while nearly halving from $16.86 billion in November 2014.
After a volatile upmove the Indian benchmarks closed Friday, marginally higher. Nifty closed at 8,514 (up 20 points or 0.23%).
The SBI Composite Index, an indicator for tracking India's manufacturing activity, slipped from 55.4 (high growth) in December 2014 to 51.5 (low growth) in January 2015.
Among the Nifty stocks, the top five stocks for the week were Ultratech Cement (12%); Hindustan Unilever (9%); ACC (9%); IDFC (8%) and Bhel (7%) while the top five losers were Hindalco Industries (-11%); Sesa Sterlite (-7%); Cairn India (-5%); Tata Steel (-4%) and Bharti Airtel (-4%).
Of the 1,492 companies on the NSE, 811 companies closed in the green, 642 companies closed in the red while 39 companies closed flat.
Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were: