Nifty -Positive weekend!

Nifty 50 up by 1.42 percent during the week and closed at 17854.

Nifty 50 up by 1.42 percent during the week.

The NSE Nifty 50 index opened with a positive gain of 649 points on Monday and ended the week with a positive close at 854 points on Friday. The index also had a weekly positive return of 1.42% and closed at 17854.

The Nifty Bank index also opened with a positive gain of 387 points on Monday and closed with a positive return of 500 points on Friday. Over the course of the week, the index had a positive return of 2.86% and closed at 41500.

Weekly Buzz

Shree Cement was the top gainer of the week. The stock of Shree Cements (SHREECEM) is currently trading above a significant moving average line, but it has recently crossed this line, which could indicate a potential short-term decline in the near future, depending on the stock’s trend. It is important to closely monitor the stock’s performance and trends to make informed investment decisions.

HDFC Life Insurance Company Ltd. was the top loser of the week, with its share price declining by 16.84%.

The Adani group experienced a significant loss of $117 billion in market capitalization after the publication of the Hindenburg report on January 24th. This loss is considered one of the worst in history. The situation was further compounded by the withdrawal of Adani Enterprises’ fully subscribed initial public offering (FPO) of Rs 20,000 crore on February 1st.

The recent allegations against the Adani group have contributed to the underperformance of the Indian stock market. However, it has been noted that the exposure of Indian banks to the Adani group is limited and therefore, they are unlikely to be significantly affected.

Indian market’s fundamentals are sound and there is no reason to panic. That the Indian economy is in good shape is also seen from the latest PMI data, which pointed to another sharp expansion of private sector activity in January.

The Indian stock market appeared to recover on Friday, despite the ongoing concerns regarding the Adani group. Given the importance of the Adani group to Indian infrastructure, it is crucial for the company to resolve its issues and regain investor confidence as soon as possible. The market regulator may play a more active role in this process to help stabilize the market.

Market breadth and Volatility

During the week, the market breadth was negative, with a weekly advance-decline ratio of 0.83, which was slightly better than the previous week’s ratio of 0.45. Additionally, the volatility index, India Vix, decreased during the week and closed at 8.48% and settled at 14.40.

Top Gainers and Losers of the Week

The top gainers in the Nifty 50 were Shree Cement (+11.72%), ITC (+10.12%), UltraTech Cement (+7.04%), ICICI Bank (+5.75%) and Britannia (+5.68%).

The top losers in the Nifty 50 were HDFC Life (-16.84%), Adani Ports (-16.42%), Divi’s Laboratories (-14.85%), SBI Life (-8.96%) and Hindalco (-3.97%).

Nifty Sectors and Broader Indices

NIFTY SECTORS – WEEKLY ACTION
Metal -7.63%
Media -0.69%
Oil and Gas -9.24%
IT +2.79%
Auto +2.20%
FMCG +3.49%
Consumer Durables +3.33%
Realty -0.40%

Weekly Pivots

As per the above pivots data, 17470 to 18110 is the Nifty 50 trading range for the next week.

Read our earlier blogs here.
Nifty’s Positive Outlool
Stocks Edge Lower
Stocks sink over Fed uncertainty

This article is only for educational purposes and is not an investment advice. Please consult with your investment advisor before investing.