Market Next Week: The major indexes lagged the benchmarks for the week ending January 16. Mid-cap and small-cap indices continued to decline for the second consecutive week. In the week ending January 16, BSE Sensex fell by 5.89 points and closed at the level of 83570.35. Whereas Nifty50 index closed at the level of 25694.35 with a gain of 11.05 points or 0.04 percent.
On the sectoral front, Nifty consumer durable, realty, pharma and healthcare sectors declined by 2 percent. Nifty Auto Index saw a decline of 1.75 percent. Nifty Media index fell 1 percent. On the other hand, Nifty PSU Bank and Metal index saw a rise of 4.5 percent and Nifty IT index saw a rise of 2.8 percent.
Foreign institutional investors (FIIs) continued their selling this week as they sold equities worth Rs 14,265.58 crore. In contrast, Domestic Institutional Investors (DIIs) supported the market by buying equities worth Rs 16,173.69 crore.
BSE’s smallcap index fell 0.5 percent last week. Genesys International Corporation, Nectar Lifesciences, GTPL Hathway, Universal Cables, Tejas Networks, InfoBeans Technologies, Lotus Chocolate Company, United Foodbrands, Amal, Igarashi Motors, Cohance Lifesciences, Globus Spirits and Jindal Poly Films saw a decline of 10-18 percent.
On the other hand, Wardwizard Innovations and Mobility, JTL Industries, Antelopus Selan Energy, IFCI, Baazar Style Retail, Angel One, Dredging Corporation India, 3B BlackBio Dx, Neogen Chemicals and Antony Waste Handling Cell saw a rise of 15-62 percent.
How could the market move next week?
Nagaraj Shetty, Senior Technical Research Analyst at HDFC Securities Said that on the weekly chart Nifty formed a small bull candle with upper and lower shadow. Technically, this market action is a signal for the formation of a high wave type candle pattern after last week’s sharp weakness. Which shows the ongoing fluctuations in the market.
The internal trend of Nifty still remains fluctuating. A sustainable move above 25900 could provide further bullish momentum for the next week. However, if the market goes below the support of 25500, there may be further decline in the market.
Amol Athawale, VP Technical Research, Kotak Securities Said that the current market formation is volatile and non-directional, and short-term activity showing non-directional trends is likely to continue in the near future. On the downside, 25,500/83000 and 25,400/82700 will act as key support zones, while daily SMA (Simple Moving Average) at 25,950/84600 and 20-day SMA at 26,000/84800 will act as key resistance levels for the bulls.
For Bank Nifty, the uptrend is likely to continue as long as it is trading above the 20-day SMA at 59,500. On the upside, it can go up to 60,500. Further upside potential could take the index to 60,800. Conversely, if it falls below the 20-day SMA at 59,500, the uptrend will weaken.
Market This week: Market movement remained flat on weekly basis amid volatility, rupee continued to fall.
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