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: