Weekly Market Updates: Key factors that will move Nifty50 and Sensex next week

 

Market Updates: Nifty50 and Sensex: The Indian markets closed in flat to positive note last week. The global cues, domestic macro data, Q3 earnings drove the market last week. Nifty50 and Sensex closed in green whereas Bank Nifty was closed down in the week ended 14th February.

 

Last week’s market updates: Nifty50 and Sensex

On a weekly basis, Nifty50 gained only 15.1 points and at 12113.45  while Sensex gained 11589 points and closed at 41257.74. The Banking index was down last week correction in both Pvt and PSU Banks was seen. The Bank Nifty was down 367.15 points and closed at 30834.80  

Last week, Nifty50 and Sensex closed flat to positive but midcap and smallcap were down 2.16% and 1.44% respectively. The Nifty midcap 100 was down by 388.7 and closed at 17978.80. Whereas the Nifty smallcap 100 declined 87.55 points and closed at 6159.75.

The top gainers in the Nifty50 index for last week were UPL, Bharti Airtel, HUL, Dr. Reddy’s Lab, and Reliance Industries. The losers in the Nifty50 stocks were IndusInd Bank, M&M, Tata Steel, Grasim Inds, and Coal India. UP gained 8.9% whereas IndusInd Bank was down 9.45% during the week.

In the Nifty midcap 100 space, the top gainer Ipca Lab gained 13.95% and Future retail gained 10.52% during the last week. The losers were HEG 16.29% and Indian Bank 12.1 %. The gainers in the Nifty small-cap space were Ircon International 19.85%, Deepak Nitrate 13.63%,  and the losers were CARE Rating 21.37%, SPARC 19.08%

On a weekly basis, except IT & Software and Media, all major sectors were closed in the red. The Nifty PSU Bank was down 4.41%, Nifty CPSE was down 4.36% Metal, Realty, Auto sectors were closed more than 3% last week.

On the FIIs and DIIs investing in the cash segment last week, FIIs investment was flat while DIIs were the net seller. FIIs bought Rs11.31 crores and DIIs sold Rs 792.91crore in the cash segment in the week ended 14th February.

 

Derivative Segment last week – Nifty50 and Bank Nifty

The market was volatile last week due to global cues and domestic macro data. The Nifty50 future started with a weak note, it has touched 11985 weekly low on last Monday and a weekly high on last Friday at 12260.40. During the week the Nifty future had given a movement of 275.4 points.

The Bank Nifty futures touched a weekly high on 13th February last Thursday at 31626.70 and a weekly low at 30774.50 on 14th February the last day of the week. During the week the Bank Nifty future had given a movement of 852.20 points.

 

Market updates: Factors that influenced the Nifty50, Sensex and Bank Nifty index

Last week Finance Minister Nirmala Sitharaman’s statement of reducing the outstanding bad loans of Public Sector Banks had created some positive movement in PSU Banking sectors. It has come down from Rs 8.96 lakh crores in March 2018 to Rs 7.27 lakh crores at the September 2019 

On Wednesday 12th February market sentiment was positive because of the Asian Markets were trading higher. The sentiment improved after the report of the number of new confirmed cases of Coronavirus in China has dipped and also said that the epidemic may be over by April. The World Health Organisation (WHO) on February 11, officially named the novel coronavirus as COVID-19.

On 13th Thursday, the market was trading negatively due to spike in Consumer Price Index (CPI) numbers at 7.59% in January from 7.35% in December and IIP numbers at -0.3%. The WPI numbers came on 14th February, WPI numbers in January stood at 3.1% as against 2.59% on an MoM

On 14th February Friday, the market closed negatively due to domestic macro data and IMF communication director Gerry Rice’s statement that India’s economy looks weaker than the IMF projected earlier in January. However, S&P retained India’s rating with a stable outlook and expects a gradual recovery in the economy with GDP growth reaching 7% in two years.

 

Stocks were in the news

How stocks reacted after Q3 earnings

The GAIL Indian reported better than expected Q3 results. The company has reported that its net profit jumped 17.5% at Rs 1250.6 crores as compared to Rs 1064.2 crores at September end of the quarter. 

Ircon International has reported strong Q3 earnings and recommended for the stock split of its equity share.

Ipca Labs reported that its consolidated net profit Q3 grew by 24.1% at Rs 197.6 crore as compared to Rs 159.2 crore on YoY. The consolidated revenue also went up by 20.5% at Rs 1213 crores against Rs 1006 crore on YoY. The share price reacted positively to the news.

Hindalco Industries has reported a 21.9% fall in its standalone net profit in December end quarter 2019 at Rs 193 crore against Rs 247 crore in the same quarter last year.

BPCL has reported that its net profit has become triple to Rs 2051.43 crores as compared to Rs 698.62 crores. But the company’s revenue from operation dropped to Rs 85926.70 crore from Rs 89324.86 crore in the same period last year. The share price of BPCL reacted positively after the Q3 earnings announced.

Nestle India reported a 38.4% jump in its Q3 net profit to Rs 473 crore as compared to Rs 341.8 crores. 

 

Other news influenced the stocks

The supreme court had dismissed the Vodafone Idea review petition for payment of AGR dues. The Vodafone declined 24.44% on the news.

The Yes Bank has informed that it had received a non-binding expression of interest (EOIs) from several foreign big investors. The share price of Yes Bank has increased continuously for the two days on the news.

ITC has hiked the prices of Cigarettes by 10-12% after the tax hike in the Budget 2020.

The market events for the next week:

RBI Monetary Policy meeting minutes will be released on 20th February, Thursday. On the Q3 earnings front, all the major companies have already announced their corporate result so far. Next week the market will have a holiday on 21st February due to Maha Shivratri, so the week will have four trading days.

There is no important event scheduled on the domestic market, the market will move as per global cues for the next week.

 

Next week Technical Levels of Nifty50 and Bank Nifty future share price

Primary Trend Nifty Futures: Mild up

Range-Bound Trend of Nifty Futures: Nifty future will range from 12000 – 12320 during the week 

Primary Trend of Banknifty Future: Mild up

Range-Bound Trend of Bank Nifty Future: Bank Nifty future will move in the range of 30480- 31530 during the next week

 

Crude and Rupee Updates:

The Crude oil prices gained last week on the hopes that the producers will cut outputs for slowing demand in China caused by Coronavirus outbreak. The Brent crude future oil price has gained more than 5% in the last week. The weekly high of Brent Crude price was $57.53 per barrel and low was $53.11 per barrel. The Brent Crude oil future price closed at $57.33 per barrel.

The Indian rupee has gained marginally higher last week at Rs 71.36 against the dollar on the week ended on 14th February against the closing of Rs 71.40 on February 7.

 

Conclusions:

The Indian markets Nifty50 and Sensex will open as per global cues on Monday in the absence of any domestic events. The next week’s market will have four trading sessions and it is expected to trade in sideways. Investors can see a bounce back in midcap and Banking stocks in the coming week.

Traders can follow our daily Nifty50 and Bank Nifty technical views and Market updates for daily market happenings.

 

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Happy Investing!!

 

Editor’s desk