Nifty – Free Fall !

Nifty 50 down by 2.35 percent during the week and closed at 17604.

Nifty 50 down by 2.35 percent during the week.

The NSE Nifty 50 index, a stock market index of the National Stock Exchange of India, had a volatile week, opening higher on Monday but closing lower on Friday and ending the week with a decline of 2.35%.

Indian equity market has been experiencing volatility in early 2023. However, brokerage firm Yes Securities has identified a few stocks that they believe have the potential to yield decent returns. They have selected Tata Motors, Bajaj Auto, and Ceat as stocks that may provide good opportunities for investors. It’s important to note that past performance is not indicative of future results and any investment decision should be based on a thorough analysis of the company and the overall market conditions. Additionally, it’s always a good idea to consult with a financial advisor before making any investment decisions.

Controversy surrounding Adani may be affecting the stock market and causing volatility, as well as negative sentiment among investors. It’s important to note that the performance of a specific company or sector should not be used to make assumptions about the overall market or economy. However, if other factors such as supply chain issues being resolved and a cooling of commodity prices are improving, it could indicate that the market is experiencing a correction rather than a prolonged downturn. It’s important to keep in mind that market conditions are constantly changing, and investors should stay informed about the latest developments to make informed decisions.

Bank Nifty down by 5.09 percent during the week.

The Bank Nifty index, which is an index of the National Stock Exchange of India (NSE) that tracks the performance of the banking sector in India, opened at a high on Monday but closed in negative territory on Friday, with a weekly decline of 5.09 percent.

The Nifty, Sensex, and Bank Nifty indexes have all dropped below key support levels, but some investors are optimistic that the upcoming budget announcement may improve market conditions and cause a rebound. These investors are referred to as bulls and they are hoping that the budget will have a positive impact on the market, putting downward pressure on the market, known as bears, on the defensive.

The Union budget, which is scheduled to be announced on February 1, is an important event for the Indian market. In addition, the outcome of the US Federal Open Market Committee (FOMC) meeting, also scheduled for February 1, is a major global event. Several companies will release their third quarter results this week, and other important factors the market will be watching are the monthly auto sales figures and macroeconomic data from the USA. In addition, the market will closely watch Adani Group, whose share price has fallen below the minimum price of its recent IPO.

Market breadth and Volatility

During the week, the market breadth was unfavorable, with a weekly advance-decline ratio of 0.45. Further, it is lower than the previous week’s figure of 0.77. The volatility index, India Vix, further increased during the week and closed at 18.18.

Top Gainers and Losers of the Week

The top gainers in the Nifty 50 were Tata Motors (+10.67%), Bajaj Auto (+10.19%), Maruti (+3.53%), ITC (+3.28%), and Hindustan Unilever (+2.47%).

The top losers in the Nifty 50 were Adani Ports (-22.87%), Shree Cement (-10.32%), SBIN (-8.78%), IndusInd Bank (-7.15%), and UltraTech Cement (-6.42%).

Nifty Sectors and Broader Indices

NIFTY SECTORS – WEEKLY ACTION
Metal -6.11%
Media -1.44%
Oil and Gas -7.44%
IT +0.80%
Auto +3.14%
FMCG +1.34%
Consumer Durables -2.59%
Realty -4.66%

Weekly Pivots

As per the above pivot data, 17330 to 18050 is the Nifty 50 trading range for the next week.

Here are links to our earlier blogs
Roller-Coaster Market
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.