Share market outlook: GDP data, F&O expiry to guide Sensex, Nifty ahead; check top stock picks for next week
By: Porisma P Gogoi | Published: November 24, 2018 2:19 PM The Financial Express
Share market weekly review: Despite a strengthening rupee and easing crude prices, Sensex and Nifty -- the benchmark indices of the domestic stock market -- traded on a volatile note and ended the truncated week with losses of over 1% each
Share market weekly review: Despite a strengthening rupee and easing crude prices, Sensex and Nifty — the benchmark indices of the domestic stock market — traded on a volatile note and ended the truncated week with losses of over 1% each. According to market observers, the domestic equity market took cues from global market volatility and ended the week with negative returns. The 30-scrip BSE Sensex closed the trading week below the 35,000-mark, while the NSE Nifty 50 failed to hold the 10,550-level. The stock market was closed on Friday on account of Guru Nanak Jayanti.
“Global cues were the major reason for present fall as global markets were moreover bearish with major indices such as SP 500, NASDAQ, FTSE, and CAC posting negative returns for the second consecutive week. Most global markets rejected the rebound from lower levels and selling pressure was clearly seen on any pullback,” said Mustafa Nadeem, CEO, Epic Research.
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Vinod Nair, Head of Research, Geojit Financial Services, said: “Market ended this week on weak note despite decline in oil prices, bond yields and strengthening of INR. Global markets were consolidating due to concerns of trade war, slowdown in global growth and rising interest rates. Nair said the truce between the government and RBIand an extension of deadline to implement Basel III lending norms was positive for the market. “However, volatility in global markets had an impact on domestic sentiments,” he added.
What to expect next week
The week ahead may continue to remain volatile for the share market on account of global growth concerns, along with the release of domestic gross domestic product (GDP) data, November derivatives expiry and the upcoming state elections. “Global growth concerns due to trade war, rising interest rate and lower liquidity in the financial markets will add volatility. However, rise in US crude oil inventory and expectation of slow pace in FED rate hike in CY19 could provide some support,” Nair said.
According to Nadeem, the major event for the Indian equity market next week would be the GDP data that is eyed at the end of this month, along with futures and options expiry. “The numbers would certainly give a medium-term directional view for broader indices and decide the breadth for coming months. That said, we have elections in major states and a lot would depend on the outcome of it,” Nadeem added.
Stock picks for next week
Among stock picks for next week, Epic Research has suggested Zee Entertainment Enterprises, which outperformed with good volumes and closed near day’s high. “It also closed above the 200 EMA on the hourly chart. We recommend buying from the current level for the target of 465 with the stop loss of 450,” Epic Research’s Nadeem said.
Other stocks include Tata Chemicals (recommend “buy” from around 690 level for the target of 700 with stop loss of 690) and RBL Bank (recommend “buy” from current level for the target of 565 with stop loss of 550).
Key takeaways this week
Weekly losses: The Sensex cracked 476 points or 1.34% to close the week at 34,981.02 points. The Nifty 50 of the National Stock Exchange closed 155 points or 1.45% lower week-on-week at 10,526.75 points.
Top weekly Sensex gainers: Bharti Airtel (7.95%), Adani Ports (6.33%), ITC (2.19%), Sun Pharma (2.11%) and Tata Motors (1.28%).
Top weekly Sensex losers: Tata Steel (-8.27%), Wipro (-5.09%), Yes Bank (-5.07%), NTPC (-5.07%) and ICICI Bank (-4.78%).
Top weekly Nifty 50 gainers: Bharti Airtel (7.70%), Adani Ports (6.34%), Grasim Industries (4.28%), Zee Entertainment (4%) and Bajaj Finserv (2.25%).
Top weekly Nifty 50 losers: Indiabulls Housing (-12.32%), Tata Steel (-8.43%), Hindalco (-6.64%), Indian Oil Corporation (-5.73%) and NTPC (-5.07%).
FII/DII activity: Provisional data from the stock exchanges showed that foreign institutional investors pulled out funds worth Rs 855.61 crore between November 19-22. Domestic institutional investors, on the other hand, purchased stocks worth Rs 302.09 crore.
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