Is Nifty Having a Panic Attack Due to the Elections?

This week was one packed with surprises. I say this as the week may have consisted of only three trading days, but those three days were action-packed. This is as we saw some stocks take a steep tumble which will have left their investors with soiled pants. On the other hand, there were a handful of stocks that performed rather exceptionally and that too out of the blue as their fundamentals are incredibly shaky. Hence, the big question is how did the overall picture look. To understand that read on.

When coming to the indexes, we see that the benchmark indexes ended the week on a positive note. This is as the Nifty rose by 0.9%, while the BSE Sensex 30 rose by 1%. However, the big question is how long-lived the positivity in the benchmark indexes will last. I say this as on the last trading day of the week both the benchmark indexes formed a dark cloud cover which brings into question the viability of the ongoing bull run. Moreover, the next nail in the bull’s coffin is being placed by the VIX as on the last trading day it scaled up to the 23.05 mark after which it closed at 22.74. Thus, to help out in solving this conundrum I will share an intraday chart on my twitter handle of Nifty, Sensex and Bank Nifty before the market opens on Monday. This is as it will help you understand which levels you should consider for trading in the coming week. The reason I am delaying the sharing of the charts till then is due to this weekend being a long one hence I will have to take into account the weekend news cycle and the behavior of the global markets.

However, now when we come to the broader and sectoral indexes, we see that things here were not on the up and go. I say this as the NIFTY Smallcap 100 , and NIFTY Midcap 100 took a tumble this week which resulted in the closing in the red. This is as the Nifty SmallCap fell by 0.9%, while the Nifty MidCap fell by 0.5%. On the sectoral front, the market emotion was mixed. This is as Nifty Auto , Nifty Metal and Nifty IT turned out to be the top three gainers. Nifty Auto rose by 2.2%, while Nifty Metal and IT rose by 1.3% and 1.1%. However, on the losing front, Nifty PSU Bank, Media, and Realty got slaughtered. I say this as Nifty PSU Bank fell by a painful 2.7%, while Nifty Media and Realty fell by 2.6% and 1.9%.

This week there were three stocks in the news. The first stock in the news was Jet Airways (NS: JET ) as the company has officially been grounded and cannot service any of its flights as of now. This resulted in the stock falling by roughly 37% over the course of the week. The other stock in the news was Mahindra & Mahindra (NS: MAHM ). This is as the firm penned a deal with Ford Motors to develop a midsize SUV in India. As per the agreement Ford will be chipping in Rs 6.8 billion which will be utilized for the development of automobiles over ten years. However, this news couldn’t excite investors as the stock fell by 0.5% on the last trading day of the week and this most definitely gives a funny feeling to the tummies of the bulls. The third stock in the news was Ashoka Buildcon Ltd (NS: ABDL ) as the company locked in a lucrative deal worth Rs 443.23 crore from Rail Vikas Nigam Ltd (NS: RAIV ). This resulted in the stock rising by 0.4% on the last trading day of the week.

Now coming to the market moving news for the coming week several large firms are scheduled to release their earnings. These are:
• April 23: ACC (NS: ACC ) Cement
• April 24: Indiabulls Housing Finance Ltd (NS: INBF )
• April 25: AXIS Bank Ltd (NS: AXBK )
• April 26: Yes Bank (NS: YESB )
• April 26: HDFC AMC
• April 26: Hero MotoCorp (NS: HROM )

Lastly, this week on my twitter handle I shared several charts with their essential levels. I am happy to say that all of them followed the levels provided and if you would like to review more information about them then do visit the twitter handle to see the charts. This is as the levels in nearly all the charts are still highly relevant in the coming week. Moreover, on an ending note on Monday morning before the market opens, I will be sharing the intraday chart for the Nifty, Sensex and Bank Nifty. So do take a look at them so as to gauge where the market may open and what will be the price action of the day.

Note: The original charts discussed can be found on my twitter handle of sahluwalia032. Also, a link to the twitter account for the investing website visitors is shared below: https://twitter.com/sahluwalia032

Disclaimer: The investments discussed by Sandeep Singh Ahluwalia may not be suitable for all investors. Therefore, you must trust your analysis and judgment the equity before making investment decisions. The report provided is for informational purpose only and should not be interpreted as a proposition to buy or sell any securities.