Weekly share market news: Market outlook for next week, Latest market news & Technical levels

 

Share Market News: The Indian share market ends in a positive note in the last week. The Nifty gained 95.55 points while the Sensex was up 345.65 points on a weekly basis. Both Sensex and Nifty gained almost 0.80% in the last week.

The NSE Banking Index, Bank Nifty fell 506.75  or 1.58% in the last week. The banking stocks like IndusInd Bank, Yes Bank, SBI and ICICI have dragged down the Bank Nifty last week. 

 

Share market news last week

The Nifty Midcap and Smallcap index performed well in the last week. The Nifty Midcap 100 index gained 687.55 points whereas the Nifty Smallcap 100 index was up 231.6 points on a weekly basis. Both the indexes gained around 3.80% in the last week.

The Top five gainers in the Nifty50 stocks in the last week were Bharti Airtel, Zee Enter, Hindustan Unilever, Nestle India, and Britannia Industries. The losers in Nifty50 stocks were Bharti Infra, Yes Bank, IndusInd Bank, SBI and BPCL.

The gainers in the Midcap space were Emami, Prestige Estate, Mahanagar Gas, Indraprastha Gas, and Bharat Electron. The losers in the Nifty Midcap space were Indiabulls Venture, Future Consumers, Godrej Industries, GMR Infra, and Cummins India.

In the Nifty Smallcap space, the gainers were TV18 Broadcast, IRB Infra, Rallies India, Avanti Feeds, and Indiabulls Real Est. The losers were Spandana Sphoort, Sunteck Realty, Suzlon Energy, Lemon Tree Hotels and Vakrangee.

On Sectoral front, Except Banking & Finance, all major sectors were the gainers in the last week like IT & Software, Pharma, FMCG, Energy, Realty, Consumptions, Metal & Media.

On a weekly basis, FIIs bought Rs 63.78 crores in the cash segment. Whereas DIIs were the net seller in the cash segment last week in the Indian Equity market. DIIs sold Rs 3104.52 crores in the cash segment last week.

 

Share Market news that moved the market last week

On 13th Jan the CPI data was released, it accelerated to 7.35%  in December as compared to 5.54% in November 2019. The CPI data was high in more than the last five years and it is due to high food inflation. The food inflation was recorded at 60.5% in December as compared to 36% in November.

The next day the WPI Inflation also released at higher. It came 2.59% against 0.58% on MoM basis and it is also due to higher food inflation.

On the global front, The US-China has signed the Phase one trade deal agreement on the 15th of this month. This will ease the trade relationship between the two largest economic countries after a gap of around 18 months.

 

Stocks in the news in the last week

Infosys reported its Q3 earnings on the 10th after the market. It beats the streets estimates and the share price reacted positively last Monday. It has reported an 11% rise in net profit on a QoQ basis

Titan Company gained in the last week because Rakesh Jhunjunwala and his wife have increased stake in Titan Company up to 6.69%.

Supreme Court last week has allowed Vedanta to participate to bid for NALCO.

The Bharti Airtel special committee of directors has approved a fundraising plan, approximately 14,400 crores through QIP.

Wipro missed Q3 numbers expectations, it has reported a 3.8% sequential decline in consolidated net profit at Rs 2455.9 crore in Dec quarter. The share price reacted negatively after the result.

HCL Tech and TCS have announced their Q3 earnings after the market last Friday. HCL Tech reported a 16% YoY growth and 14.6% QoQ in its net profit. 

Whereas TCS has reported slow growth in Q3 earnings, its net profit grew 0.20% on a YoY basis. Monday market may react positively to HCT tech earnings and negatively on TCS earnings.

Reliance reported Q3 earnings on Friday after the market, it has reported a 13.5% rise in net profit to a record of 11,640 crores. Overall it meets the street estimates and on Monday market will react positively to Reliance.

 

Banking & Finance Stocks were in the news last week

HDFC Bank has reported Q3 earnings on 18th Jan Saturday, It has reported a 32.77% increase in net profit but asset quality has weaken and provision got a spike. The Gross NPA stood at 1.42% as of Dec 2029 as against 1.38% in the preceding quarter. 

The NII increased 12.69% on a YoY basis. The Provisions and contingencies increased by 37.62% YoY and 12.70% QoQ to Rs 3043.56 crores during the quarter.

The Yes Bank was one of the top five losers in Nifty 50 stocks last week. The reasons for the weakness in the share price are because of the Company’s Independent Director Uttam Prakash resigned ahead of his terms. 

Kotak Institution has cut the target price from Rs 55 to Rs 40 last week. And Moody’s has downgraded its foreign currency rating. Above all, in their last board meeting, no decision on fundraising has been announced. Yes Bank will have EGM on 7th Feb to get shareholders’ approval to raise Authorised Capital.

IndusInd Bank reported a 32% hike in its net profit at Rs 1300 crores in Q3FY20. This is as compared to Rs 958 crore in the same quarter last year. The company’s NII was up 34.3% at Rs 3071 crore as against Rs 2288.1 crore on YoY basis.

The share price of IndusInd Bank is down for the last four days as it has increased gross slippage due to one travel account.

Derivative sectors last week

The Nifty future share price last Monday opened at 12330.70. It has touched a weekly high on 14th Jan Tuesday at 12412.50 and low at 12319.05 on 15th Jan Wednesday. During the week the Nifty future has given a movement of only 93.45 points.

The Bank Nifty future share price opened last Monday at 32159.65. It has touched a weekly high at 32380 last Monday 13th Jan and a low at 31540 on 17th Jan last Friday. During the week the Bank Nifty future has given a movement of 840 points.

The Nifty was moved sideways throughout the week whereas the Bank Nifty was trading in negative zone in the last week.

 

Market events for next week:

Next week there is no major event scheduled on the economic calendar. The Nifty50 stocks that are going to announce their Q3 earnings are Kotak Mahindra Bank, Zeel, Axis Bank, Axis Bank, LT, and JSW Steel.

Investors can follow fundamentally good stocks in the Mid and Small-cap space because pre-budget rally already started in this space. In the last week, we have seen a good rally in both the midcap and smallcap index.

 

Technical levels of Nifty and Bank Nifty future for the next week

Primary Trend Nifty Futures: Mild up to Sideways 

Range-Bound Trend of Nifty Futures: Nifty future will range from 12200 – 12440 during the week 

Primary Trend of Banknifty Future:  Sideways volatile

Range-Bound Trend of Bank Nifty Future: Bank Nifty future will move in the range of 30870- 31950 during the next week.

 

Crude and rupee updates

The crude oil has become stable after the US-Iran tension ease. The Brent Crude oil future was trading almost flat during the week. It was down 0.20% from the previous close and presently it closed at $65.10.

The Indian rupee has also traded almost flat last week, it has closed 0.03% weaker against the US dollar in the last week. It has closed at Rs 71.08 in the last trade.

 

Conclusions

Indian share market will first react to Q3 earnings announced after the market last Friday. Reliance and HCL Tech beat the street estimates whereas TCS and HDFC Bank may react negatively due to slow growth and NPA slippages.

As there are no major events lined up in the next week, the Indian share market will move based on the stock news and Q3 earnings of heavyweight stocks. The Midcap and Smallcap will continue its northwards journey.

Traders can follow our daily Nifty and Bank Nifty views and daily market updates.

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Happy Investing!!

Editors desk