Nifty ended the day more or less flat, closing just 10 points above yesterday, a hairline above the 7200 mark at 7202.
In the past entire week Nifty has maintained the rough range of 7000-7200 with a few intraday breaches. This was the best weekly closing in the last 8-9 weeks.
BankNifty posted slightly better performance than Nifty today , whereas on weekly outlook it seems to have taken support at the trendline near the level of 14000 which is very strong support psychologically. Given that the season of poor results is past us, there appears to be a little less pessimism in the market.
The Nifty IT index looked quite cheerful today and this week. After the formation of a Hammer on the chart a temporary bottom was aptly in place. However the weekly chart doesn’t look very cheerful as the Index had broken below an old trendline and what we witnessed this week may turn out to be nothing more than a pullback rally. However, we will have to wait to be sure.
Now , taking in the sectoral performance for the day:
Banking stocks lead the way with gains in the range of 2-5%, followed by the Auto sector with in which we see Hero motor has performed very well, giving 3% gains. Yesterday we mentioned the positive breakout from the symmetrical triangle on Hero moto’s chart, today we see it has given good gains. Just by the way, you can refer to our blog for details on these patterns. Getting back to the sectors, Jswsteel was a gainer in the steel sector whereas the Pharmaceutical stocks were also fairly positive today.
Coming to Rupee, not a very pretty scene as rupee breached the life time low of 68.80 today. And as per analysts there is a good chance that rupee may touch 70 in the days to come. This coupled with the sad international indices, which are all trading in red, don’t give us much positive expectations for the coming week. However the listless movement may continue till the Budget which is coming next week. It is a very important event for the country and will be the setting the course for the stock market in the coming months.
Chart of the day
Bosch ltd, which is an auto ancillary company, has given a positive breakout from its box/rectangle/range . When we open on Monday, this can be a stock to look out for and witness the performance post the breakout.
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