Trend To Be Decided By Macros, 12000 The Psychological Hurdle

IT, Pharma, Metal Stocks Push Markets to New Highs

Our Analysis

This week the frontline indices had a subdued performance. The Nifty which took a hit in the first half of the week retraced from its support near 9-EMA and witnessed a momentum at the end. Once again it was the banking stocks who helped the market to sustain.

Throughout the week, The buzz of the macro data kept the investor awake. The Inflation which recorded at 4 percent was majorly due to the rise in the food price, along with the IIP which contracted to 4.3 percent for the second month raised the questions for rate cuts. Ongoing noises around GDP numbers, weakening rupee remains the key concern, where RBI is expected to look into.

Technically, Nifty had been trading in a narrow range of 200 points from the last 12 days. In downside 11,800 is the support and on the upside 12,000 will play a psychological hurdle. Now we are done with the earnings releases so the upcoming GDP data and RBI Monetary policy along with the US-China trade deal will decide the faith of the Indian share market.

This Weeks Market Highlights:

Benchmark Indices:

1) On Monday, The market remained rangebound throughout the session with a negative bias led by subdued global markets. However, healthy buying in the last hour helped the Nifty index to end flat. The Sensex ended 21.47 points higher or 0.05 percent at 40345.08, and the Nifty ended at 11913.50.

2) On Wednesday, The Benchmark indices ended lower after remained flat for the most part of the day. The Sensex was down 229.02 points at 40116.06, while Nifty was down 73 points at 11,840.50.

3) On Thursday, Indian shares ended a choppy session modestly higher benchmark S&P Sensex ended the session up 170.42 points, or 0.42 percent, at 40,286.48 while the broader Nifty index rose by 30 points, or 0.25 percent, to 11,870.45.

4) On Friday, Indian equity indices opened higher in line with Asian peers after a senior American official suggested progress on a trade deal with China.

Broader Index & Global Market:

-Globally, there was a mixed performance from the foreign market overall the US-China trade had been the trend decider for the globe.

-The broader pack had been trading positive in this week. The Mid & Small- cap witnessed a hefty buying amid the strong Q2 results. The momentum is likely to remain so in the coming days also.

Movers & Shakers

Shares of DIXON TECHNOLOGY surged more than 20 percent after the company's net profit for the September quarter (Q2FY20) more-than-doubled to Rs 43 crore.

Shares of ZYDUS WELLNESS dropped more than 150 percent in a week after the company posts consolidated net loss stood at Rs12cr against a profit of Rs41.4cr yoy.

Key Market Drivers

  • Forex reserves soar $3.5 billion to a new lifetime high of $446.09 billion.
  • NZ keeps interest rates unchanged.
  • IT spending in India to grow from 6.6% to $94 bn in 2020: Gartner.
  • Industrial production contracts 4.3% in September.
  • Alibaba's Singles' Day sales hit a new record of $38 billion.

Event Watch

International:

  • Japan Trade Balance
  • Markit US Services

Domestic:

  • Crude price
  • INR Price

Stocks To Watch

MSTC & BALKRISHNA IND On Upside while, SIEMENS & BRITANNIA on Downside.