Weekly Market updates:  Nifty50 ahead of Derivative market expiry

 

Weekly markets- Nifty50 & derivative market expiry:  The benchmark indices ended marginally lower in the truncated week. The Nifty50 index was down 32.5 points while Sensex declined 87.62 points in the week ended 20th February. In the absence of any domestic trigger, the markets reacted mainly to the global cues.

The Bank Nifty on weekly basis gained 108.05 points and closed at 30942.85. The midcap stocks gained the most in the last week. It gained 131.05 points or 0.74% whereas the Nifty smallcap index was closed falt gained only 2.25 points.

This week in the beginning market reacted negatively after Moody has slashed India’s GDP rate. Later Nirmala Sitharaman’s assurance to announce the measures to deal with the impact of the coronavirus outbreak on the domestic industry improved the market sentiments. 

Out of the four trading days, only on Wednesday, the Indian market reacted positively, the other three days market closed in red due to negative global cues. FIIs were the buyers and DIIs sold in the week ended 20th Feb. FIIs bought Rs 856.14 crores whereas DIIs sold Rs 573.18 crores in the cash segment.

 

Weekly market updates: Nifty50 stocks

The top five gainers in the Nifty50 index during the week are Zee Entertainment, Power Grid Corporation, Coal India, State Bank of India, and Titan Company. The losers in the Nifty50 index are Yes Bank, Tata Motors, Hero Motorcorp, Bharti Infra, and Barti Infratel.

In the Nifty midcap space, the gainers are Muthoot Finance, Indiabulls Ventures and the losers are LIC Housing Finance, NBCC. The gainers in the Nifty smallcap are Credit Acc Gram, First Source Solution and losers are Sobha, NCC.

On a Sectoral basis, Pharma, Media, Banks were the gainers and other major sectors closed in the red on the week ended 20th Feb.

 

Stocks were in the news last week.

ONGC reacted negatively on Monday due to weak Q3 earnings. Its profit plunged 47.07% and at Rs 4151.63. The revenue also dropped compared to last year’s same period. 

As per the Supreme Court’s direction, all telecom companies asked to make payments for adjusted gross revenue (AGR) to the Department of Telecom (DoT). Vodafone Idea and Bharti Airtel made the part payment last week. Both the shares of Bharti Airtel and Vodafone Idea were volatile during the week.

DoT may send notices again to telecom companies for the recovery of the balance payment for AGR. The heads of Telecom Companies met the Finance Minister to get some relief in these issues.

RBI has given approval to Kotak Mahindra Bank for a shareholding dilution plan.

SBI Cards is going to lunch its IPO in the first week of March.

Shree Cement is going to replace Yes Bank in the Nifty50 index stocks with effect from Rs 27th March 2020.

Regarding BPCL’s sales, Oil ministery’s initial bid documents and recommendations selling BPCL’s marketing and refining vertical together.

Axis Bank is planning to acquire more than 20% stake in Max Life Insurance through a fresh issue of equity.

 

Derivative market segment last week

The Nifty50 in futures opened at 12140.65 on Monday and touched weeks low at 11923.30 on Tuesday. It has touched weekly high at 12163 on Thursday. On a weekly basis, Nifty futures had given a movement of 239.7 points.

The Bank Nifty futures opened at 30894.25 on last Monday. It has touched a weekly low at 30282.55 on Tuesday and a weekly high at 31098.40 on last Thursday. On a weekly basis, the Bank Nifty futures had given a movement of 815.85 points.

 

Market events for the next week

As most of the large-cap stocks already announced its Q3 earnings, few mid-cap and smallcap stocks are going to announce their Q3 earnings in the next week. The next week there will be monthly derivative market expiry on 27th February, Thursday. So far in the Feb series, Nifty50 in futures gained only 19.5 points. 

On Friday 28th February the Infrastructure output data, Foreign exchange reserve and GDP growth data will be announced after the market.

 

Nifty & Bank Nifty technicals for Derivative market expiry week

Next week Technical Levels of Nifty and Bank Nifty share price

Primary Trend Nifty Futures: Mild up to Volatile

Range-Bound Trend of Nifty Futures: Nifty future will range from 11900 – 12240 during the week 

Primary Trend of Banknifty Future: Mild up to Volatile

Range-Bound Trend of Bank Nifty Future: Bank Nifty future will move in the range of 30600- 31700 during the next week

 

Crude and Rupee updates

The crude oil is trading higher this week due to the expectation of production output cut. During the week it has gained 1.54% so far from the last weeks close. The Indian Rupee has got depreciated by 0.63% against the dollar last week. It has closed at Rs 71.65 against the dollar this week.

 

Conclusions:

Indian stock market has closed marginally lower in the week ended 20th Feb. The next week there will be a monthly derivative market expiry, we may see some volatility in a tight range in the market. In tight range volatility normally stop loss gets triggered frequently, traders are advised to trade cautiously in the coming week. 

Due to the absence of any trigger, the market may trade as per global cues. So far Nifty and Bank Nifty have closed almost flat in Feb Series. Traders can also follow our daily Nifty50 and Bank Nifty trading views and market updates. 

 

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Editor’s Desk