Investors demand guidance from OPEC meeting and RBI monetary policy
Indian stock markets have lost nearly 2.1% over the past week due to weakness in global indices. The entire week remained very eventful and feelings were haunting over concerns over supply disruptions, Evergrande’s debt issues, the US debt ceiling debate and the bond reduction plan.
While weak Chinese economic data further dented market sentiment, heavyweight banking and IT stocks like HDFC Bank, ICICI Bank, Infosys and TCS were among the main contributors to benchmark losses this week.
However, the benchmark’s losses were partially offset by gains in energy and power stocks. Multi-year high energy prices and power shortages at the world’s largest electricity consumer, China, have kept energy and power stocks on the buying radar of consumers. investors.
On the flip side, the IT index fell nearly 5% and was one of the worst stock indexes following the fall of the Nasdaq index, as the Treasury yield jumped on fears of downsizing plans. from the Fed.
Going forward, investors will keep a close eye on OPEC and non-OPEC ministerial meetings, RBI monetary policy, and PMI data. Other than that, the US debt ceiling and the Evergrande debt update will remain under the radar of investors.
On the charts, the bears have been everywhere throughout the week as market participants are cautious due to weakness in global indices. Over one week, the benchmark fell nearly 1.80% to close at 17,532.05 levels while Bank Nifty trailed over 1.6% to settle at 37,225.90 levels.
On the sectoral level, NIFTY IT was the first loser and closed with a loss of 5.21% while Nifty PSUBANK & Oil & Gas Sector were the best winners and finished respectively at 6.07% and 5.3 % on a weekly basis.
The top five winners of the week were COALINDIA, NTPC, POWERGRID, IOC & ONGC while TECHMAHINDRA, BHARTIRTL, ASIANPAINT & BAJAJFINSERV were the main losers. On a weekly chart, the index has formed a bearish candle which indicates a correction in the coming days.
On a daily chart, the benchmark has traded with a lower and lower formation, indicating weakness in the meter. A Stoachastic & MACD momentum indicator also saw a negative cross on the daily chart. Right now, Nifty has immediate support at 17400 while resistance stands at 17750 levels.
Best winners / losers this week
Multi-year high energy prices and power shortages at the world’s largest electricity consumer, China, have kept energy and power stocks on investors’ buying radar. Stocks such as Coal India, NTPC, Power Grid, IOC and ONGC gained strong buy-side gains during the week.
Clever Winners | CNBC TV18
Computer stocks: The IT index fell sharply during the week, following the underperformance of the Nasdaq as the yield on Treasuries surged on fears of the Fed’s cut plans. Computer stocks like Tech Mahindra and HCL Tech were the biggest losers in the Nifty Index this week.
Clever losers | CNBC TV18
Bharti Airtel: After posting remarkable gains, Bharti Airtel recorded profit in the week before the correct issue.
Telecommunications department fined Rs 3,050cr on Airtel and VIL.
(Ankit Pareek is Research Analyst, Choice Broking)
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Posted on: Saturday October 02, 2021 3:13 PM IST