Replete Weekly

Stock markets weekly wrap (25th-30th September)

Benchmark indices started this week on a positive note with Gap up around 50 points and made a new high. Next three days it consolidates in range due to the absence of any major cues. On Friday nifty loose all it strength and close this week down by 1.2% as North Korea announced that it may detonate a hydrogen bomb in the Pacific Ocean.

Nifty started the week at 10056.85 and Made an all-time high of 10178.95. Nifty closed at 9964.40 down by 1.2%.

The broader market extended sold this week as Nifty Midcap and the Small-cap both down by 2.94% and 2.86%, respectively.

On the sectoral front, all the sectors posted losses for this week. The Nifty Realty, Metal, and PSU Bank indices bore the maximum brunt of the selling, as they lost 4.81%, 4.68%, and 3.83%, respectively, during the week. Nifty Pharma and IT indices managed to swim against the tide, ending with gains of 1.36% and 0.31%, respectively, for the week.

Finance Minister Arun Jaitley on Wednesday gave hints that the govt is getting ready a stimulation package of approximately Rs 50,000 crore to boost the economy. Economists express apprehensions that the govt. maybe going a similar approach as the then finance minister Pranab Mukherjee had done throughout the post-2008 downswing, which ended up causing additional damage to the economy than good.

Telecom sector was focused in the week because the telecom regulatory authority of India (TRAI) slashed the interconnect usage charge (IUC) for all mobile-to-mobile calls to 6 paise per minute from 14 paise presently. The revised charge is going to be effective from October 1. The regulator has also announced that IUC is going to be abolished starting January 1, 2020. Analyst says it’s given Jio an unfair edge.

The following events could serve as market movers in the coming week:

  • German federal election to be held on September 24

  • India government budget value for August 2017, to be released on September 29

Overall uptrend in under pressure so be cautious with new entries and make a defensive plan for your portfolio

Technical summary for coming week:-

NSE NIFTY is long-term Bullish as the 144 days moving average of 9,552.13 is increasing. The Relative Strength Index is at 48.47 in the neutral territory. The Relative Momentum Index is at 71.90 in the overbought territory. An important indicator for Elliott waves, the Elliott oscillator is at 84.87, in positive territory; this is a bullish sign. An equally important indicator, the STORSI is at 48.27. This value is in the neutral territory.

We detected a Gann Swing or Pullback that is usually a bearish pattern! It should be used with other indicators.

Stocks to be watch for Portfolio:-

CIPLA

CIPLA is long term Bullish as the 144 days moving average of 562.23 is increasing. The Relative Strength Index is at 60.08 in the neutral territory. The Relative Momentum Index is at 66.12 in the neutral territory. An important indicator for Elliott waves, the Elliott oscillator is at 16.71, in positive territory; this is a bullish sign. An equally important indicator, the STORSI is at 86.88. This value is in the overbought territory.

we detected a Gann Swing or Pullback that is usually a bullish pattern! It should be used with other indicators.

Medium term target is 690.

DISCLAIMER: – we are not a SEBI research analyst. Views posted here only for educational purposes. There is no liability whatsoever for any loss arising from the use of this product or its contents. This product is not a recommendation to buy or sell, but rather a guideline to interpreting specified analysis methods.  This information should only be used by investors and traders who are aware of the risk inherent in securities trading

About Sachin Siwal

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