The week started on a positive note for the Indian stock markets. On the first trading session the stock markets opened lower and as a result traded with a positive bias for the initial half of the session. However, the continual falling of rupee and sector specific poor performances lead to the fall in the later half to close flat. Amongst all NSE India and BSE India stocks, only Tatapower could justifiably beat nifty. Otherwise Wipro, ITC and Infosys were at the forefront of the fall. Amongst all NSE and BSE sectors, FMCG and IT played worst while Finance, Infra sectors and Banking sectors performed surprisingly good. The selling pressure on the first day depicted its after effects on the second day too. The second day almost opened higher and thereby traded negative for the entire day. The third day started on a negative note but showed some volatility in the latter part of the session. However, some short-covering was seen within the day. As a result the stock markets experienced optimism on Thursday to close higher. Last day went flat with no much enthusiasm and momentum in the stock markets.
One of the major reasons for rupee depreciation being the rising trade deficit and thereby more outflow of money. As a solution to this liquidity crunch, MRPL, the major oil refiner refused more oil imports from Iran. This might lead to oil shortage and so Government announced 7.5 Rs/Ltr. hike in petrol prices. This was a major set-back for the stock markets.
The Nifty was more-or-less range bound. Now the immediate resistance for the nifty is at 4960 in the first place and 5040 later. Similarly the immediate support for the nifty is at 4780 levels. Unless breakout is given, Nifty will tend to remain range-bound. Considering the weekly data, the stock markets were flat last week. The only contradictory thing was that last week stock markets experienced sell-off initially and buying spree in the latter sessions. The weekly charts show that the oscillators are still lying in the oversold zone. Thus the stock markets might begin with the positive opening. But the whole week traded flat, so its better to wait-n-watch and then react and not anticipate any move.
Now after a long break Rakesh Jhunjhunwala has again gradually entered the equities market with adding Pfocus, Geometric software, Viceroy Hotels and Aptech to Rakesh Jhunjhunwala's portfolio. After these news the stocks have gained momentum for daily trading and investments, both. Analysts have predicted that Rakesh Jhunjhunwala found these stocks from different sectors good for accumulation. May be because these have fallen to the extremes or planning for some future prospects. Is this an indication of bottom finishing, or just buying at every dips or a stock specific move?
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