9450! Nifty ‘Bull’dozes Ahead

Market This Week

The market is making new highs and pushing support levels much higher with every session. This week Nifty index, for the first time, reached near 9450 level. After pushing for infra sector by pumping capital and emphasizing more on the quick development of the Indian economy, the government is focused more on the banking sector as well, as banking is again one of the major driving sectors of the economy. Naturally, the government is focused on asset quality and NPAs. Clearing balance sheets of the banks is a major point of concern for the banks at this point.

Movers And Shakers

Post Steel policy announcement, steel stocks looked much stronger as Government is pushing domestic level production of steel and minimising the import of steel and associated raw materials. Here after getting everything operational, companies will start showing improved profitability in coming quarters.

Pharma is still under threat as US FDA inspections are still on and most of the companies have delivered poor as per expectations of the street. All the large-cap and midcap pharma companies have faced the brunt of the US FDA inspections.

Key Market Drivers

FIIs are booking short term profits and most of the orders were looked like FIIs are hedging most of their investments. This is actually good for the Indian market as FIIs are still in favour of the market as there is hardly any major event left which can correct market, except the war of the countries. There is notable tension at the border as Pakistan is provoking Indian army on the regular basis. Whether it will escalate further or get resolved remains to be seen. On the global front, U.S and North Korea are also flexing their military muscle at this point.

Event Watch

IT companies are still on with their floor cutting spree. All the major IT companies, midcap IT companies are dealing with dealing with the existential crisis. On domestic as well as on global space, few events are left for the current month. Market have tried correcting few times but due to strong support has remained stable. Investors are waiting for correcting to enter but smart investors are still investing cautiously and gaining better returns.

Stocks to Watch

Jamna auto Ltd is on the upside while Glenmark Pharma is on the downside