Weekly market report by Mr. Mustafa Nadeem, CEO, Epic Research.
The second consecutive week of loss as global markets negative cues and Earnings season weighs on investors. Nifty ended lowest in this financial year on the first day of November series. Nifty closed tad above 10000 Mark at 10040, also a few points away from its crucial 52 week low placed at 9951.
Nifty was under pressure since the start of the week as the opening day for the week saw the formation of a bearish engulfing pattern. Post follow up move was seen in favor of bears as multiple factors aided to the fall. The global markets saw a sharp decline with S&P plummeting below 2700 mark while DJIA was trading below 25K, also below its 20 SMA, a short-term measure to know the trend of the market. Starting on a weak note, Nifty followed the global cues in Midweek and saw selling pressure just ahead and on expiry with rollovers pointing to a volatile November and a bearish sentiment.
Earnings season weighed further as higher provisions by Yes bank took a toll on share price and saw a sharp cut of 8% while ITC with a decent set of numbers was hammered down. Expectations from ICICI bank was another flavor for the street while post Yes bank numbers and negative sentiments kept range in check for the stock.
A bearish Marubozu is seen forming which is a bearish formation while the indication of the candle further shows a the bearishness in the broader indices. Open and High were almost similar while the close was near to the week's low, and near a Financial year low dampens any positive and bright hope bulls.
Technically we are seeing a continuation of previous bearish trend post some consolidation that was seen between 10100 - 10300. Nifty has its next support at 9950 while a breach of this would open the floodgates for 9650 - 9700. Any rebound, for now, may be utilized while only a close above 10200 will call for any buying that too maybe not as strong as previously were seen at these levels in March 2018.
Manufacturing PMI and Infrastructure output numbers are ahead and will be seen crucially while the leads will also be taken from ICICI bank's result. Mostly the trend will be in tandem with the global markets and indices such as SP500. The rupee has strengthened a bit in the last couple of days on the back f crude oil being down almost 12 - 13%.
For now, We remain cautious as Nifty is at a crucial support zone and any directional play will be beyond 9950 or 10200.
Shares of 20 MICRONS LTD. was last trading in BSE at Rs.39.6 as compared to the previous close of Rs. 39.05. The total number of shares traded during the day was 1068 in over 27 trades.
The stock hit an intraday high of Rs. 40.45 and intraday low of 39. The net turnover during the day was Rs. 42018.