Nifty Sensex weekly updates: Key factors that will drive the market next week

 

Nifty Sensex updates last week: Indian stock market was marginally down in the last week whereas Nifty midcap and smallcap were the biggest gainers on a weekly basis. The Nifty was down 19.15 points in the last week while Sensex declined 110.53 points. The Bank Nifty fell 343.10 points in the last week.

The market was trading sideways in the last week.  Last week the positive news was improved GST collections, Auto sales, and PMI data. Whereas the negative news was geopolitical tension in the middle east that came on the last day of the week. The negative news has bound the traders to book profit at a higher level last Friday. 

 

Nifty, Sensex stocks updates last week

On a weekly basis, the Nifty midcap 100 index gained 285.55 points while the small-cap index also up by 203.5 points.

The top five Nifty50 gainers in the last week are Tata Motors, GAIL, Adani Ports, Sun Pharma, and coal India. The losers in the Nifty50 stocks are Zee Ent, Bajaj Auto, Eicher Motors, Titan Company, and Asian Paints.

Last week in the Nifty midcap space the gainers are PNB Housing, Sterlite Tech and the losers are Sun TV, Whirlpool. In the Nifty smallcap space the gainers are Indiabulls Real, Suzlon Energy and the losers are Kaveri Seeds co, Dish TV.

On a weekly basis, the sectors that closed in green are IT & Software, Pharma, Energy, Realty and Metal. The sectors which closed in red in the last week are Banking & Finance, FMCG, Telecom, Automobiles, and Media.

FIIs were the buyers and DIIs were the seller in the last week in the cash segment. FIIs bought Rs 1263.05 crores and DIIs sold Rs 1029.20 crore in the cash segment last week. 

 

Derivative market updates last week

In the derivative segment, the Nifty future opened last Monday at 12326.10 and closed this Friday 12256.45. Nifty future has touched weekly high at 12348 last Monday i.e 30th Dec and weekly low at 12222.95 last Friday. It has given a weekly movement of 125.05 points only.

The Bank Nifty Future has opened the week on last Monday at 32632.45 and closed the week at 32161.30. Bank Nifty future has touched weekly high at 32773.85 on last Monday and Week’s low at 32060.20 last Friday. It has given a weekly movement of 713.65 points.

 

Markets news that moved Nifty Sensex index last week

In the domestic front, the GST collection has crossed Rs 1.03 lakh crore in December 2019. This is the second time in a row the GST collection is over 1lakh crore.

The IHS Markit manufacturing PMI data for December 2019 was announced last week. It was increased to 52.7 in December 2019 compared to 52.2 in November 2019.

On the global front, the Central bank of China has cut the reserve requirement ratio by 50 bps to recover from the economic slowdown.

Qassem Soleimai, the head of Iran military force was killed early Friday in an airstrike in Baghdad by the US. The news has spiked the crude oil price and depreciates the Indian rupee on last Friday

 

Stocks that moved Nifty Sensex last week

Bharti Airtel has hiked its minimum recharge for prepaid customers to Rs 45 from Rs 23. This has benefitted the share price of Bharti Airtel last week.

NTPC ‘s 800 MW unit of its Daripali Super Thermal Power Project in Odisa has become operational last week. Morgan Stanley has maintained an overweight rating on the stock with a target price of Rs152 per share.

Dr. Reddy Lab and Sun Pharma both have received a USFDA approval for new drugs 

Adani Group to acquire a 75% stake in Krishnapatnam Port, this will accelerate Adani Port’s plan to expand its cargo handling capacity to 400 mt by 2025.

The State Bank of India plans to float around a $2 billion distressed asset fund in 2020. 

Maruti Suzuki had reported an increase of 3.9% in the auto sales number in December.

Citi has maintained a buy rating on Tata Motors with a target of Rs 200 per share due to the positive sales recovery on the JLR.

Eicher Motors December auto sales were down by 13% due to poor sales in Royal Enfield and export down.

 

Key factors that will drive the market next week

The Q3FY20 earning will be announced from next week. The first Nifty50 stock that is going to announce the Q3 result is Infosys on 10th January Friday. Other than this are few midcaps and small caps stocks will declare their Q3 result in this week.

The Crude oil price was trading higher on last Friday due to the tension in the Middle East. If crude oil prices increase further then there could be a problem in the Indian equity market. India is one of the biggest importers of crude oil.

The higher crude oil prices mean depreciation in rupee. We have already seen last Friday that the Indian rupee has become weak against the US dollar by 0.70% with an increase of $3 in crude oil. The weak Indian rupee can spoil the mood of the Indian equity market.

On Monday, the Markit Service PMI data will be released around 10.30. On Friday, 10th Jan the Industrial production data on a YoY basis will be announced after the market.

 

The technical outlook for the market next week

Next week Share Market-Technical levels of Nifty and Bank Nifty future

Primary Trend Nifty Futures: Mild down to Sideways

Range-Bound Trend of Nifty Futures: Nifty future will range from 12110 – 12380 during the week 

Primary Trend of Banknifty Future:  Mild down to Sideways 

Range-Bound Trend of Bank Nifty Future: Bank Nifty future will move in the range of 31600- 32880  during the next week

 

Cude and Rupee updates

The crude oil price was trading higher on last Friday as the US confirmed the killing of Iran military head in an airstrike in Baghdad. The Brent crude oil future price had touched $69.48 and closed $68.66 per barrel last Friday.

The Indian rupee has become weak on Friday due to the higher crude oil price. The Indian rupee has touched a weekly high at Rs71.84 against the US dollar last Friday and closed at Rs71.78 against the dollar.

Conclusions:

The benchmark indices Nifty, Sensex closed marginally lower in the last week. FIIs were the net buyers in the cash segment last week. The next week, the market will drive by Crude oil and rupee. The market may see some correction if the middle east tension gets escalate.

The Nifty midcap and smallcap indexes performed well in the last week, it is expected to continue to do so in the coming week also. The sectors like  IT, Metal, Auto, and Banks are will be in action in the coming week. 

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Editor’s desk