The Indian markets closed the week with gains amidst heavy volatile sessions. Heavy buying pressure seems to emerge whenever the market declines. At the same time, the indices are not able to surge past the 200 day moving average which currently works as resistance. Both the sensex and the Nifty were seen moving in a narrow band of 26,423 -27,500 and 8000-8300 respectively. The past week ended with sensex and Nifty closing up 219 and 71 points respectively at 27,324 and 8262. Declining consumer and wholesale price inflation numbers, rupee rates and surge in US stock markets may provide some boost to the Indian markets in the days to come.
The Indian stock markets closed in red for the third consecutive week – this time below the 200 day moving average indicating that the downward move is stronger than expected. Markets were mostly weighed down due to April derivative expiry, disappointing Q4 results and forecast of weak monsoon ahead. The Sensex and the Nifty closed at 27,011 and 8,182. The global markets were also gloomy last week with the Dow, FTSE and Nikkei closing in red.
The Indian stock market indices are now posed almost near the 200day moving average as mentioned in our previous article. The reason is obliviously disappointing Q4 results and weak monsoon forecast. With the sensex and the Nifty losing 1004 and 301 points respectively last week , now there is some scope for action as renewed buying interest may occur in select sectors and stocks. Being month end, we will also see more activity at the bourses as April derivative contracts roll into expiry on Thursday. The stock markets will be closed on Friday on account of ‘Maharashtra day’.
Both the Sensex and the Nifty hit intra week high of 29,094 and 8,844 before reversing lower and settled at 28,442 and 8,606 which shows that the level of conviction of the investors is low at higher levels. In simple words, investors are not convinced about the growth story making them book profits at higher levels. The numbers published by TCS were disappointing and investors generally presume that this is an indication of industry wide weakness which will be revealed soon. This has given a disappointing start to the Q4 earnings season. Positives like lower CPI and better IIP numbers were set off by widening trade deficit and decline in exports.
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