Indian Stock Market Weekly Roundup (November 14 -18)

Major indices of the Indian Stock Market, Sensex, and Nifty 50 declined in last week as Global capital markets continued to post mixed results. As hopes of lower interest rate hikes are fading away, investors and traders are getting more cautious about what is happening in the capital markets.

After consecutive weeks of posting gains, the Sensex and Nifty 50 declined in the third week of November 2022.

During the week, BSE Sensex declined 131.56 points or 0.21 percent to end at 61,663.48, while the Nifty50 lost 41 points or 0.22 percent to close at 18,307.7 levels.

Among sectoral indices on the NSE, Nifty PSU Bank added 2.3 percent and Nifty bank gained 0.7 percent. On the other hand, Nifty Media shed 5.3 percent, Nifty Auto fell 2 percent, and Nifty FMCG and Energy dropped 1.7 percent each.

BSE Mid-cap shed 1.3 percent, BSE Small-cap lost 0.8 percent and BSE Large-cap Index retreated 0.5 percent.

Despite having a decrease in Inflation rates, US Federal Reserve is planning to continue interest rate hikes at a reduced intensity. This is going to have an adverse effect on fund flow toward the Indian stock market. As the possibility of an economic recession is increasing in European countries, foreign institutional Investments are expected to reduce in the next few weeks.

“The benchmark indices witnessed volatile activity. Among Sectors, the Media index lost the most, shedding over 5 percent whereas the PSU Bank index outperformed, and rallied over 2%. At the beginning of the week, the Nifty consistently witnessed profit booking near the 18400 resistance zone. Technically, intraday reversal formations and bearish candles on weekly charts indicate indecisiveness between the bulls and bears,” said Amol Athawale, Deputy Vice President – Technical Research, at Kotak Securities.

“Further to our perception, the medium-term index formation is still on the positive side. Hence, buying on short-term corrections and selling on rallies would be the ideal strategy for traders. 18200 would act as a key support zone on the flip side 18400 and 18550 could be the important hurdles, below 18100 uptrends would be vulnerable,” he added.

Amidst global uncertainties, the performance of the Indian economy in terms of controlling inflation and keeping a steady growth rate has been exceptional. The performance of Indian companies in the last quarter and good projections for the next quarter is making things less  tough for Indian stocks.