INSUBCONTINENT EXCLUSIVE:
The domestic equity market continued its whipsaw movement with a downward bias and shallow depth during the week gone by.
Secular sectors
like FMCG have delivered good numbers, but cyclicals have disappointed the market.
Moreover, retail players have surprised everyone by
delivering double-digit growth
Organised players have indeed gained at the cost of SMEs and MSMEs, which can be seen from their quarterly numbers.
This was also the
vindication that GST and demonetisation have impacted a large population, which is also what is worrying the government since elections are
Hopefully, the Union Budget next week will assuage such concerns of the middle class
However, being a populist Budget, it might not be welcomed by the market given the effect it might have on corporate profitability
Nonetheless, all eyes will be on it for clarity on policy initiatives.
The political fever is hitting a high day after day, wherein
economics has taken a back seat in all the decision-making processes of the government, which will further keep the market under pressure
In addition, very little has come out on the efforts to settle the trade dispute between the US and China, which has cast doubt on the
Whenever such changes have occurred in the past, like in the case of Jubilant FoodWorks, SpiceJet, the market has always rewarded the stock
and, hopefully, YES Bank too will get the same treatment.
On the earnings front, Asian Paints stole the show with a 14.6 per cent increase
Indigo reported a 75 per cent drop in bottomline
Ultratech Cement with a 15 per cent de-growth in PAT and ITC posting a mere 3.9 per cent growth in PAT disappointed!
Technical OutlookAfter
a failed attempt to move higher, Nifty50 has now given a bearish signal by penetrating the triangle on the lower side
The indecisiveness of past few weeks seems to have been resolved and it is expected that prices would head lower steadily
However, a break below the 10,650 on the Nifty50 would further confirm much lower prices with the 10,300 level on the Nifty being a possible
scenario.
Sell on rise should be the strategy for traders
Individual shorts can be initiated on stocks that have slipped below their 100-day moving averages.
Expectations for the WeekMr Market is
overcrowded with a lot of uncertainties given the global geo-political scenario, little clarity on the US-China trade settlement, EU
slowdown, indecisiveness over BREXIT, US government shutdown and the domestic political conundrum, which will certainly scare away the bulls
Due to these uncertainties, the bulls are not going to commit money in a big way, which will keep the indices in the negative or sideways
taken a negative stance wherein the velocity is expected to remain muted
Investors should stay on the sidelines but keep money ready for deployment on any panic.
The Nifty50 closed the week 1.16 per cent lower at
