Weekly Equity Market Review: Latest Stock Market News and Market Next week

 

Indian equity market closed marginally higher in the last week. The Nifty gained 30.15 points while Sensex was up 135.11 during the week. The Bank Nifty closed flat to positive, it gained only 28.15 points in the last week.

 

Weekly equity market review

On a weekly basis the Nifty midcap 100 index 94.50 points. Whereas the Nifty smallcap 100 index was up only 95.75 points from the previous week’s close.

The top five Nifty50 gainers in the last week are Ultratech Cement, Tata Motors, M&M, Adani Ports, and Asian Paints. The losers in the Nifty50 stocks for the week are Yes Bank, Zee Entertainment, Eicher Motors, ONGC, and Coal India.

The sectors which gained in the last week are Realty, FMCG, Automobile, Media and Banking & Fiance. The losing sectors in the last week are Pharma, Energy, PSE Sectors, Metal, and CPSE.

FIIs are the net seller in the last week, they sold Rs 1154.75 crores in the cash segment. DIIs are the net buyers, they bought Rs 1203.37 crores in the cash segment last week.

 

Equity market news last week

Last week in the Indian equity market, Nikkei/IHS Markit Service PMI numbers announced on Monday. It rose tp 53.3 in December compared to 52.7 in November 2019. 

The market saw a strong correction last Monday after the Iran military leader killed by the US drone strike. The next day the markets were positive because Iran was under pressure by the world leader not to escalate the issue. 

Later after two days Iran also retaliates and fired missiles at Iraq airbase hosting US troops but Trump said there is no harm to any US troops in retaliation. Initially, Crude oil price was trading higher and Indian rupee became weak after the US Iran tension later both became stable.

The world bank has cut India’s growth for FY20 to 5% from 6% estimated earlier but an estimated 5.8% in the next financial year.

India’s Index of Industrial Production (IIP) data rose by 1.8% in November as against the contraction of 3.8% in October. The IIP data has become positive after three consecutive contractions in a row.

 

Derivative News last week

In the derivative sectors, the Nifty future opened at 12201.90 on last Monday. It has touched the weekly high at 12357 on last Friday and weekly low at 11976.60 on 8th Jan or Wednesday. On a weekly basis, the Nifty future has given a movement of 380.40 points.

The Bank Nifty future has opened at 32000 last the Monday morning. It has touched a weekly hight at 32384.95 last Friday and week’s low at 30971.80 on 8th Wednesday. On a weekly basis, the Bank Nifty future has given a movement of 1413.15 points.

It was a volatile week for both Nifty and Bank Nifty future. 

 

Stocks in the news last week

Tata Motor’s Jaguar Land Rover reported degrowth in the US sales for the month of December. The company has reported that sales is declined by 2% compared to the last month.

An American firm showed interest to acquire Jet Airways, the debt-laden airline company as per the report last week. 

The metal shares got some positive momentum after the government eases coal and mining norms. The government likely to launch an aggregated steel hub for 5-6 states and the states are WB, Odisha, Jharkhand, Chattisgarh and Andhra Pradesh.

Bharti Airtel has launched its QIP worth $2 billion at a floor price of Rs 452.09 per share.

Morgan Stanley retained an overweight rating on Reliance Industries with a target price of Rs 1753. It has expected strong growth of reliance on retail and telecom business.

KNR Construction has sold its entire stake of a toll road BOT asset KNR Walayar Tollways Pvt Ltd to Cube Highways and Infrastructure. The share price reacted positively to the market on the news.

The IT major Infosys has announced its Q3FY20 numbers on last Friday after the market. It beats the street estimates, the YoY net profit rose by 23.5% to Rs 4457 crores and 10.9% in QoQ basis. Its revenue went up by 7.9% at Rs 23092 cr.

 

Banking stocks were in news last week

Last week HDFC Bank reported a 20% growth in advances during the December 2019 ended quarter. The share price got some positive momentum on the news.

The Bank of Baroda has approved to issue bonds last week. The bond will issue of Basel III compliant Tier II Bonds for aggregate total issue size not exceeding Rs 2000 cr in single or multiple tranches.

Uttam Prakash Agarwal an Independent Director of Yes Bank has resigned from the Bank’s audit committee ahead of his terms.

 In the Board meeting last Friday on fundraising, the board has approved of raising Rs10,000 cr via a mix of debt and equity. The board has also decided not to go ahead with an earlier investment proposal of Erwin Sing Braich a Canadian Investors 

 

Indian equity market for the next week

Next week the CPI inflation numbers will be released on 13th and WPI numbers are scheduled on 14th January. The Q3 result for Nifty50 stocks in the coming week are IndusInd Bank, Wipro, Reliance, HCL Tech, TCS.

On the global front, the US-China phase one trade agreement is expected to sign next week. On the other side, Iran-US tension can also spark and spoil the market mood.

 

Technical levels of Nifty and Bank Nifty future for the next week

Primary Trend Nifty Futures: Sideways 

Range-Bound Trend of Nifty Futures: Nifty future will range from 12000 – 12400 during the week 

Primary Trend of Banknifty Future:  Sideways volatile

Range-Bound Trend of Bank Nifty Future: Bank Nifty future will move in the range of 31580- 33170 during the next week.

 

Crude and rupee updates

Crude oil was highly volatile last week due to US Iran tension. The Brent Crude oil future touched a weekly high of $71.75 per barrel. It has closed at $65.07 per barrel. 

The Indian rupee was also volatile along with crude prices. It has depreciated and touched Rs 72.123 against the US dollar last week. The Indian rupee gains after the crude become stable, it closed at Rs 70.96 against the US dollar.

 

Conclusions

There are many events scheduled in the Indian stock market next week. The CPI, WPI, Q3 results of heavyweight stocks are on the domestic front. On the global front, much-awaited US-China “phase one” trade agreement signing will be done next week. 

Though the US Iran tension has become ease and bull took the charge in the Indian stock market but traders should remain cautious on this front in the next week. 

On Monday, the equity market will first react to positive IIP data. Indian market will also react to the Infosys result came after the market hours on last Friday and Yes Bank fundraising board decision. 

Traders can follow our daily Nifty and Bank Nifty views and market updates.

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Happy Investing!!

Editors desk