Tag - Nifty

This Week in a nutshell (18th Oct to 22nd Oct)

Technical talks

NIFTY opened the week on 18th October at 18,500 and closed on 22nd October at 18,114 during the week, the index lost -2%. Nifty is trading at an RSI of 72, with support at 18,095 and resistance at 18,602.

Weekly highlights

  • China Evergrande Group pulled back from the edge of default by paying a bond coupon of $83.5 million before Saturday’s deadline. This came as a surprise as Evergrande was expected to make payments to local creditors and suppliers first who are waiting for the company to make due payments.
  • Applications for unemployment benefits in the US have dropped by 6,000 to 2,90,000 this week. Layoff levels have become normal but hiring by companies has been slow. It is observed that people who were laid off have stopped looking for new jobs.
  • India is going through a coal crisis which has coincided with an increase in demand for electricity. The Centre is planning to maintain sufficient reserves of coal and natural gas to tackle future shortage of coal.
  • India’s top private banks including HDFC Bank, Kotak Mahindra Bank, Axis Bank and IndusInd Bank are bidding for Citi’s consumer banking business after it announced exit from consumer banking in 13 countries including India.
  • Maharashtra is witnessing a declining trend in its covid cases and hence the Government eased restrictions starting 22nd October by reopening amusement parks and cinemas. Restaurants and shops are also allowed relaxed timings. This will have a positive impact on the restaurant and entertainment industry.
  • Federal Reserve Chair Jerome Powell indicated that the central bank would begin winding down its bond purchases but remain patient on raising interest rates.
  • US markets continued their rally this week but fell on Friday as the Fed warned about concerns about inflation.
  • The foreign institutional investors (FII )sold equities worth of Rs 73,530 mn, while domestic institutional investors (DIIs) sold equities worth of Rs 45,040 mn.

Things to watch out for next week:

  • Result season continues next week in the US, and India. Big IT companies such as Facebook, Microsoft, Alphabet are set to announce earnings next week. In India, banks like Kotak bank and IndusInd bank are set to report earnings. commentary from banks regarding loan book growth will be critical.
  • Pharma biggies such as Cipla, Lupin and Torrent will also report earnings next week.
  • Commentary regarding raw material inflation and logistical challenges would be critical.

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This week in a nutshell (April 19th to April 23rd)

Technical talks

NIFTY opened the week on 19thApril at 14,307and closed on 23rd April at 14,341, a marginal increase of 0.2%.NIFTY has been hovering around the 100 DMA of 14,374 throughout the week. This remains the crucial level to watch out for before moving in either direction.

Weekly highlights

  • FIIs continued their selling spree with a net outflow of Rs 49,870 mn during the week. DIIs continued to be net buyers as they pumped in Rs 62,250 mn in the week.
  • The daily rise in covid-19 cases in India reached a record on 22ndApril when the number crossed 0.33 mn. This is the highest number of new cases recorded in a single day in the world. Several Indian states have imposed stricter restrictions or lockdowns in response. The worsening conditions have led to volatility in the equity markets.
  • Government of India announced the next phase of Covid-19 vaccination drive will start from 1st May 2021. Everyone above the age of 18 will be eligible to get vaccinated. Amidst concerns over shortage of vaccines, producers have been asked to ramp up production. This is a developing scenario as there are also concerns regarding raw material procurement from the US.
  • US Equity indices came off from their record highs oflast week. The indices ended the week on a lower note as reports indicated that President Biden will propose to significantly increase capital gains tax for wealthy individuals.
  • Insurance Regulatory and Development Authority of India (IRDAI) reported March monthly business figures for life insurers. The industry New Business Premium (NBP) grew by 71% YoY. Mar-20 was a low base due to Covid-19 led disruption. For the quarter 4QFY21, the NBP growth was 35% YoY.

Things to watch out for next week

  • The ongoing 4QFY21 result season will gain traction next week as several big companies across sectors start to report quarterly numbers. Managements’ comments over the business impact of second wave of Covid-19 will be important.