This week was highly volatile as there was a constant duel between the bull and the bears. It all ended with the bulls just managing to get one over on the bears all thanks to the last two trading sessions of the week. Moreover, investors in the Indian market had a severe level of apprehension this week owing to the depreciating rupee combined with effect of rising crude oil prices and high bond yields.
Due to the above-mentioned issues, the market commenced the week on the back foot as there was a massive level of selling off occurring in the broader market indexes which resulted in the Nifty and Sensex closing the day 0.8% down. Tuesday was extremely calm as the market movements were minuscule but at the same instance it provided investors with some respite as the key indexes managed to post gains of 0.1%. On Wednesday, the bears came back with a show of force as they took the market down throughout the day as nearly all candle patterns on the intraday charts were bearish across the board which resulted in both the key indexes falling by 1%. Both Thursday and Friday were positive for the market which resulted in the Nifty and Sensex closed the week a mere 0.1% higher.
The broader market indexes had a very bumpy week as there were four bearish days and one bullish day. The Nifty SmallCap closed the week completely flat whilst the Nifty MidCap closed the week 0.6% lower. On the sectorial indexes facet, Nifty IT stole all the glory amongst the sea of red in the rest of the market and this was all thanks to the declining rupee. The Nifty IT ascended by 2.3% whilst the Nifty Pharma and Bank rose by 1.5% and 1%, respectively. On the negative front, Nifty Energy tumbled by 1.9% whilst the Nifty FMCG and Auto fell by 0.9% and 0.7%, respectively.
In the forthcoming week, the following occurrences be market influencers:
- The Fourth Quarter GDP data that shall be released on 31stMay.
- The Infrastructure output data for April that shall be released on 31stMay.
- The Nikkei Manufacturing PMI data for May that shall be released on 1stJune.
- The fourth quarter financial results for 2018 for Power Grid Corporation, Aurobindo Pharma (NS:ARBN), Mahindra & Mahindra (NS:MAHM) and Thomas Cook (NS:THOM) India.
Good luck trading.
Sandeep Singh Ahluwalia