Weekly Market Snapshot
Throughout the week, the Nifty experienced an impressive surge, marked by a breakout to a swing high on the daily chart. This indicates a growing sense of optimism among market participants. Nevertheless, the latter part of the week saw the Nifty consolidating its gains.The week ended on a positive note in the US, with indications of a slowing labor market and economy, fueling speculation about potential interest rate cuts in early 2024.
Key Market Movements
- Market indices posted record closes, with Nifty reaching a life high of 21,006 intra-day.
- Sensex rose by 304 points to 69,826, and Nifty gained 68 points to 20,969.
- The market recorded its biggest weekly gain since July 2022, with Sensex and Nifty rising more than 3%, and Nifty Bank gaining over 5%.
Sectoral Movements And Stock Specifics
- Midcap Index slipped from a record high, snapping a 25-day gaining streak.
- 14 of the 50 Nifty stocks hit multi-year highs on Friday.
- IT stocks, including HCL and Mindtree, were top gainers with healthy volumes.
- Adani Group stocks saw profit booking, closing all stocks in the red.
- Sugar stocks were under pressure following an announcement regarding ethanol.
Leaders And Laggards
'BTST' and 'Nifty Rider' were two of the best-performing models, with 8.97% and 6.30% returns, respectively.
'Back Up' and 'Quick Short' were two of the underperformers, with negative 1.28% and 3.20% returns respectively in the same period.
- Coming to stocks, PRESTIGE, or Prestige Estates Projects Limited, provided a return of 9.85% as part of 'Alpha Ally' model, followed by HSCL, or Himadri Speciality Chemical Ltd, which returned 9.77% as part of 'Sector Superstars' model.
- On the contrary, JINDALSAW, or Jindal Saw Limited, was the underperformer with negative 7.95% returns, followed by RKFORGE, or Ramkrishna Forgings Ltd with negative 7.57% returns, both as part of the 'Sector Superstars' model.
Expert Insights And Market Outlook
- Prashanth Tapse, Senior VP (Research), Mehta EquitiesBuying resumed after a day's break, driven by positive global cues and RBI's increased FY24 GDP forecast. Despite overbought technical conditions, the short-term technical outlook favors the bulls. Support for Nifty is at 20,777-20,521 levels, with resistance at 21,121-21,331.
- Vinod Nair, Head of Research at Geojit Financial Services: RBI's balanced approach raised economic growth forecasts but expressed concern about short-term food inflation. Impact observed on FMCG stocks as food grain prices may rise. IT stocks, including HCL and LT-Mindtree, rose with healthy volumes, while Adani Group stocks saw profit booking.
Reads On The Internet
Vedanta to raise $1.25 bn at much higher rates
The company is in the process of raising $1.25 billion for refinancing and managing our upcoming maturities. We are at an advanced stage of these discussions and continue to engage with bondholders simultaneously.
Dunzo’s fund crunch continues; fails to pay November salary
Dunzo is trying for a fund raise of around $25-30 million to meet operating expenses. However, the same is expected to come at a much lower valuation.
BSE, NSE GIFT City units to be merged by Jan 2024; direct listing by April
The move is expected to bring more volumes in GIFT City exchanges. As per the official website, average daily turnover on international exchanges is $20 billion currently, majorly driven by GIFT Nifty contract.
India's forex reserves surpasses $600 billion mark after nearly four months
We remain confident of meeting our external financing requirements comfortably," Reserve Bank Governor Shaktikanta Das said
India to move to same-day market settlement before fiscal year end: Sebi
Currently trades in India are settled in "T+1" or one day after the trades are initiated. T+0 would mean settlements in the same day and instant settlement would ensure trades are settled immediately.
Disclaimer: The opinions expressed in this blog are personal views and should not be considered financial advice. Please do your own research and consult with a professional before making any investment decisions.
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