Nifty Breaks 9,500 Level; Correction Ahead

May 19, 2017 | 04:53 PM IST

GST Impact

Market This Week

The market was in no mood of taking any U-turn as it was pushing new highs throughout the week. Donald Trump's tax reform was expected to give the market some correction. However, nothing significant happened post announcement disappointing domestic investors who were ready to enter the market at any minor dip. The investors were looking expectantly at the two-day GST meet that will finish on Friday. So far GST has around 81% items below 18% tax rate. Hopefully, it will cover all the sectors which will bring more positivity in the market.

Movers And Shakers

This week finance and auto stocks played a crucial role in the market rally. Edelweiss Financial Services is continuing its bull run along with the market. In last few months, volumes have spiked in the stock and higher delivery based volume has been seen. Similar to that, Jamna Auto is looking much stronger than earlier. On the downside, R Systems International has continued its free fall and breaking all support levels as of now.

Key Market Drivers

HUDCO made a strong debut on both the indexes, listing with the premium of 22%. The government-run firm’s share opened at Rs 73.45 and went on to touch a high and a low of Rs 76.70 and Rs 70.55, respectively. At 10.05am, the stock was trading at Rs 76 on the BSE, up 27% from its issue price of Rs 60 a share. India’s benchmark index - Sensex rose 0.85% to 30,694.42 points this week. Midcaps looked flat last week and so were large caps. But considering the coming triggers, fundamentally stable stocks don't look like giving any breathing space to the investors. Even investors are utilising every minor dip to enter the market.

Event Watch

In recent past time, NBFCs have delivered better returns and for the coming time, affordable housing is looking much stronger. RERA could roll over with a more aggressive jump as most of the home buyers could find better safety now than earlier and could go bullish on buying homes in coming days. As we have seen earlier, infra could be one of the most focused sectors in the coming days. The big government-backed development projects have brightened the prospects of the infra sector. On the other hand, the monsoon is about to hit most of the parts of India next couple of weeks. The IMD has already predicted a normal monsoon this year. It's another good news for the market which is in no mood to relent at this point.

Stocks To Watch

Edelweiss Financial Services is on the upside while R Systems International is on the downside.

 

ABOUT AUTHOR

Niveza Editorial Desk : We are a team of stock market nerds trying to stay ahead of the herd. We spend our grey cells everyday to pave a smooth road for our clients in the shaky world of stock market. While...
FULL BIO

LEAVE A COMMENT

RECOMMENDED READING

Sensex At 35000 & Nifty At 10800; Banks Rally

Share Market News – 17-January-2018 The market on Wednesday opened on a positive note as Sensex was up by over 60 points to trade above 34,800 levels while Nifty was up by 15 points to trade above 10,700 but soon it turned
Read More>>

Nifty Above 10,700 For First Time; Sensex Misses The 35K Milestone

Share Market News – 15-January-2018 The market on Monday began on a positive note as Sensex was up by 180 points to trade above 34,700 levels while Nifty was up by 50 points to trade above 10,700 for the first time. The
Read More>>

Bulls Take Charge As Sensex & Nifty Scale New High

Market This Week The New Year cheer extended for the second consecutive week as the benchmark indices once again continued to hit new record highs throughout the week backed
Read More>>

Free Research Report - Himatsingka Seide Ltd

The Himatsingka Group focuses on the manufacturing,
Read More>>

Why Settle For Less? The Best Tax Saving Investment

The tax season starts with the new year and all the salaried and business people scurry around to find the hacks to save maximum tax. The problem with people's perception is that they tend to think of Income Tax Act as an incomprehensible text
Read More>>