The Indian market extended the gain on Monday on the back of report that
the India’s export grew by 0.80% to $26.5 billion in the month of November. The
major indices continued the smart recovery on Tuesday to end the session in
green on account of value buying. Jubilation continued for the seventh continuous
session on Wednesday, on Minister of commerce and Industry, Suresh Prabhu’s
statement that “India will be 5 trillion dollar economy in coming 7-8 years and
already have completed the road map for it”. The continued decline in crude oil
process and appreciation in value of rupee also contributed to the positive
sentiment. In addition, the government’s proposal to infuse additional capital
in PSU Banks, provide enhanced liquidity in the system and GST council’s proposal
to reduce the GST rate on selected item including Cement also contributed to
the positivity. The market remained lackluster on Thursday, amid weak global
cues and continuous selling by the traders on FOMC raising the Fed Rate by
25bps. On last trading day, the market remained under pressure throughout the
session and ended the week with intraday heavy losses of around 2%, triggered
by a sell-off in global equities amid rising concern over global economic
growth for next year.
The Sensex and Nifty closed the week with loss of 221 points (0.6%) and 51
points (0.5%) respectively;
FIIs were the net buyer whereas. DIIs were net seller during the week.
Sector Wise Movement
BSE PSU (up by 199
points or 2.9%) and BSE Utilities (up by 41 points or 2.2%) were the top
gainers on the BSE sectoral front, whereas, BSE IT (down by 769 points or 5.2%).
The Coming week is going to be holiday
truncated week on the account of Christmas. The market participants will be
tracking the movement in Rupee, outcome of GST Council meeting, Global cues and
FIIs investment flows.
The market is expected to consolidate. Traders
are, therefore, advised to invest in fundamentally good companies on
Nifty displayed negativity and closed losing 51
points this week. It opened and made a high of 10985, low of 10734 and closed
An engulfing candlestick on daily charts near
resistance suggests more negativity for the coming week as also in the short
term. Nifty confirms its downtrend but has not broken all major supports. On
a downward journey, it can witness level of 10580.
Current open interest for the month of December,
2018 suggests a range of 10850 and 10580 for Nifty.
Traders are advised to accumulate fundamentally
strong stocks at support levels.