Nifty Breaks 9,500 Level; Correction Ahead

Nifty Breaks 9,500 Level; Correction Ahead

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 firms 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.

Indias 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 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.

LEAVE A COMMENT

RECOMMENDED READING

Stock Advisory Service: Your Stock Investment Insurance

Stock investment is messy. Yes, there is a big growth potential but if you are doing it on your own and you don't have the experience of
Read More>>

Volatility Continues As Trade War Tensions Escalate Between US & China

Our Analysis The stock market traded in the range of 10,650 to 10,800 this week as well. Barring Wednesday, the market remained low due to weakness in global market amid US-China trade
Read More>>

Free Share Market Tips Today: Stop & Read Before You Invest In Stocks

Various popular stock market news portals and TV channels discuss trending stocks and provide free share market tips based on technical charts and often without in-depth research. Our research desk analyses these trending stock market tips and pro
Read More>>

Volatility Likely To Continue Due To Higher Inflation & OPEC Outcome

Our Analysis This week market remained range-bound due to higher domestic inflation & mixed global cues.Pharma sector stocks continued to outperform market led by Lupin, Dr. Reddy, Cipl
Read More>>

Free Research Report – KEI Industries Ltd

KEI Industries limited, established in 1968 as a Partnership Company and a player in the power cable segment and one among the largest cable manufacturing companies in India. The Company has three segments: cable, stainless steel and turnkey proj
Read More>>