Weekly Market Recap:
Market action was little choppy, but since correction begun post budget speech this was the first week , when market managed to eke out a small gain on daily basis, without losing on single day, amid pessimism and negative sentiments, making its longest winning streak since last week of January.
Both Indices went home with handsome gains. The BSE Sensex added 565 points, or, 1.68%, for the week gone by to settle at 34,192, while the broader Nifty50 climbed 149 points, or 1.44% to 10,480.
IT continued to shine this week. Infosys declared their Q4 earning in line with street expectation post market hours on Friday, but investor didn’t seem to be happy with future guidance, as a result INFY ADR was down approximately 8% at New York stock exchange and same reaction is expected at Indian bourses on Monday. Selected financial and auto stocks also did well, whereas, Pharmaceuticals remained on flip side.
Current Market Outlook:
Corporate earnings will take the centre stage in the weeks ahead as some of the index-heavyweight companies are scheduled to release their Q4 numbers. Choppiness continues to be the part of the market as reward and punishment will go hand in hand, based on good and bad earnings.
Technically, when I look at the charts, I don’t see a lot to talk about except that bulls are very active at lower levels that I have written in previous blog. This is one of those times. After broken a year-long rising trend line (see past blogs) market is gyrating to find out the direction and I think earning may help to identifying the trend and direction. However, on weekly long-term chart trend is still up and intact.
Moreover, Geopolitical tension are returning to haunt the market in coming week after US and allies launched air strikes on Syria over the weekend, raising middle-east tension, which have the potential to trigger a major spike in crude oil price. As I have written in my past blog that technically crude oil and gold, both are hovering near two year highs, overcoming that horizontal resistance may trigger a big upside which is bad for Indian equity market.
Conclusion:
Technically, short term and intermediate trend is neutral, therefore it is pertinent to not to be apocalyptic, unless market itself portends the delineation of the future course of action. However, I would like to see less volatility and choppiness before I start thinking in favour of bull. Hence never forget to place a stop loss, in order to protect your capital.
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Be patient..!! Be a Savvy Investor..!!
Pankaj