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Foreign Liquidity pushing market higher Market opened the week down mirroring the Wall Street worries but pulled up slowly on back of huge year end liquidity gush flooding the financial markets. FPI’s have made a record equity purchases in the month of March amounting to Rs 27000/- Crs, unseen in last ten years. DIIs have played contra and sold stocks worth Rs 6000/- Crs, partially booking profits on stocks acquired during demonetization fall when they purchased shares to the tune of Rs 18500/- Crs, indeed a smart move. GST passed in Lok Sabha at break neck speed, shows the conviction of the government to accelerate the reform agenda for the country. July 1st seems to be the reality. CL Educate Ltd lists at 20% below the issue price contrasting to the 100% listing gain for D-Mart. Markets are far more intelligent and mature; investors should thoroughly study the business model and then apply, blindly following grey market premiums will not help. Fundamentals will eventually count, this is the lesson for all forthcoming IPO’s. Events of the week: The death of physical infrastructure has arrived in India similar to US, wherein chain stores and malls are closing down, Warren Buffet selling shares in such companies etc. Kotak Bank shifting to digital model signals the sunset for physical branch models. The disruption in the banking space has begun which will result into shrinking branches but digital penetrations will increase. The reverse race has begun as to who reduces the branches more. Technical Outlook: The market is still in corrective mode. Indicators are showing some minor divergence indicating some profit booking can still emerge next week. The momentum of this week’s rally was slightly slower which means still the bulls are not in full control and therefore some more consolidation is expected before the up move begins. The market may come to fill the gap and touch the 9000 levels before making any decisive move up. Traders should buy on dips. All long positional trades must have a strict stop at 8900 levels on the Nifty. Expectations for the week: Indeed Indian market danced to the tune of global market. The strength of US President has weakened to carry out pro America reforms or America First policy which in a way is good for country like India. The worry for Pharma sector now is the appreciating Rupee, the moment reversal in Rupee happens, which seems most likely, the rally in pharma will restart and IT sector too will follow as the concerns for H1-B visas are also easing. Investors should watch out Rupee devaluations for lightning action in these two sectors. The Supreme Court’s diktat on BS III automobiles offers an opportunity to accumulate shares of these auto companies. The annual results season will start in a week’s time, until then the market is expected to remain in sideways zone. Investors should remain invested and traders should buy on decline with strict stops. Nifty50 closed for the week at 9173.75 up by 0.72 %.