Markets Getting Ready For A Rally

Oil Cools, Rupee On Fire, Market Admires

Our Analysis

This week market consolidated between 10,400 to 10,650 due to lack of domestic positive news & due to technical resistance. Though the fall of crude oil price below $65/ barrel because of the oversupply but as OPEC decided to cut the daily production, the price of crude oil reversed. Rupee headed for a second-week gain in three on renewed inflows into the nation's stocks and bonds. Also tension between RBI & Central Government not helping the market sentiment. Domestic data also not been favourable as WPI widened & Fiscal deficit increased. Market expected to remain volatile & for rally market need to close above 10,700. RBI meeting, state election voting, rupee movement, crude oil price will be an event to watch next week.

This Weeks Market Highlights:

Benchmark Indices:

1. Last hour selling ended market at days low to start the week as Sensex fall 346 points while Nifty ended below 10,500.

2. Among sector, auto, PSU bank, metal, pharma & energy stocks were among the major losers while IT closed higher. The Nifty midcap index closed 166 points lower.

3. On Tuesday buying in 2nd half helped benchmark indices to close higher as Sensex surged 332 points while Nifty closed near 10,600.

4. In terms of sectors, energy, infra, metals, private banks & auto were top gainers, while pharma & realty space top losers. The nifty midcap index closed 0.33% higher.

5. On Wednesday equity indices ended the rangebound session on a flat note as Sensex fall 2 points while Nifty hold above 10,550.

6. On Thursday market ended at over 1-month high as Sensex rose 119 points while Nifty closed above 10,600 led by private lenders.

7. On Friday market extended rally, Nifty well above 10,600 led by IT & Reliance.

Broader Index & Global Market:

- This week broader market traded inline with the market as Nifty midcap & smallcap index remained flat. On sectoral space Nifty banking & financials, energy & PSU bank index only outperformed the market while IT, pharma, media, realty, metal, FMCG index remained flat or corrected.

- This week US market continued to slide for 5th but end on Thursday on expectations of easing in US-China trade tension. European market reversed course after the resignation of UK Brexit secretary Dominic Raab sparked a series of resignations by other ministers. Asian market remained mix due to trade war tension, fall in crude oil price. OPEC meeting, US services, manufacturing & Markit composite PMI, Dollar movement & Crude oil price will be an event to watch.

Movers & Shakers

Shares of Jet Airways (India) Ltd. surged over 30% this week after reports emerged that Tata Sons is in pursuit of a controlling stake in the debt-laden carrier. News agency Reuters, citing people aware of the talks, reported that Tata is weighing up the economic viability of a deal which would make it Jet Airways' decision-maker, necessitating the departure of the airline's founder, Naresh Goyal.

Shares of Yes Bank dipped over 15% this week after Ashok Chawla, the banks non-executive chairman, stepped down on Wednesday. The bank said Chawla has tendered his resignation as he felt the private lender would need a chairman who could devote more time and attention while chief executive Rana Kapoor is on his way out while OP Bhatt resigns as an expert of search & selection panel.

Key Market Drivers

Inflation based on WPI rose to a four-month high of 5.28% in October, mainly due to a spike in petrol & diesel prices, even as food prices softened. The WPI based inflation stood at 5.13% in September & 3.68% in October last year.

Indias exports rose sharply in October as a weaker rupee provided a competitive edge, but equally strong growth in imports widened the trade deficit. Exports grew 17.9% to $26.98 billion last month from $22.89 billion a year earlier, data released by the commerce department showed. Imports climbed 17.6% to $44.11billion, yielding a trade deficit of $17.13 billion.

Event Watch

RBI Board to Meeting will be on 19th November 2018. Chhattisgarh 2nd phase Voting will be on 20th November 2018.

Global:- US Services PMI, Manufacturing PMI, Markit Composite PMI. OPEC meeting will be on 20th November 20

Stocks To Watch

Shilpa Medicare Ltd. is on the upside while PC Jeweller Ltd. 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 a pave a smooth road for our clients in the shaky world of stock market. While tracking the mood swings of the market we bring our clients the most rewarding deals.

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