Weekly Big Picture : Market Exhibits High Volatility; Jet Airways Gains After Approval of Debt Resolution Plan

Market Pulse

Rally Attempt

Weekly Action

Benchmark indices closed lower at the end of the week. Nifty, -2.0%; Sensex, -2.0%; Nifty Midcap, -2.3%; Nifty Smallcap, -3.4%; Model Portfolio, -3.9%; and MSI Ind 47, -3.4%.

Weekly Market Review

Benchmark indices exhibited high intraday volatility today. Nifty50 fell during the first half making a low of 10,620.4 after which it recovered more than 1% to end 0.2% lower (at 10,724) than yesterday’s level.Most of the indices underwent correction during the week. The Nifty50 and the Sensex lost 2% each during the week whereas Midcap and Smallcap were down 2.3% and 3.4%, respectively.

Among the worst performers were Nifty PSU (-7.0%) and Nifty Auto (-3.4%). After the monetary policy announcement previous week, PSU banks were hit the most and Auto index resumed the fall after good start during the previous week. Nifty FMCG (-1.6%) and Nifty IT (-1.3%) performed relatively better to the other sectors, but registered a steep fall compared to resilient performance in the past few weeks. All sectoral indices were in the red for the week except Nifty Media (+4.3%), which remained volatile.

The market status remained unchanged. After we moved the status to a Rally Attempt, the market failed to give a follow-through day. We will look for a legitimate follow-through day on the Nifty before we upgrade the market to a Confirmed Uptrend. However we’ll downgrade the status to a Downtrend if the Nifty 50 breaches 10,583.6 level.

Following events scheduled post market hours can move the market next week:

●        February 15: Bank loan growth and deposit growth

●        February 15: Trade balance and Forex reserve data (RBI)

Stocks in News

Divis Laboratories fell 6% intraday today after officials from Income Tax department ran investigations in the Company’s offices and manufacturing sites in Andhra Pradesh and Telangana. However, the stock recovered toward the end and closed 1% lower.

Jet Airways (India) rose more than 6% intraday after it announced yesterday the approval of its debt resolution plans. The Company also plans to raise funds against equity from a government fund to carry on with its revival plans.

Leaders Up on Volume: Bata India (+5.8%), and Upl (+0.8% )

Leaders Down on Volume: Iol Chemicals & Pharms. (-9.1%), Britannia Inds. (-8.1%), and Dr Reddys Laboratories (-7.7%)

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