The NIFTY 50 index closed the week on a negative note, losing 98.85 points or 0.50%. The index started the week on a positive note, as investors were optimistic about the Q1 FY24 earnings season and the global developments. The index lost momentum in the later part of the week, as some of the key sectors such as metal, pharma and auto delivered weak results and dragged the market sentiment. The index also faced pressure from the negative global cues, the rise in COVID-19 cases and the FII selling.
The following bullet points summarize the daily performance of the NIFTY 50 index for the week, along with the open value, day’s high, day’s low and volatility VIX for each day:
- 24-JUL-2023 (Mon)
- Nifty index - closing value: 19,672.35 , open value: 19,748.45 , day’s high: 19,782.75 , day’s low: 19,658.30 , volatility VIX: 11.65
- Change from previous trading day: -0.37%
- Trend: Bearish
- Top 5 Factors which drove the market this day:
- Weak global markets
- Profit booking at higher levels
- Weakness in metal and pharma stocks
- Rise in COVID-19 cases in some states
- DII selling
- 25-JUL-2023 (Tue)
- Nifty index - closing value: 19,680.60 , open value: 19,729.35 , day’s high: 19,729.35 , day’s low: 19,615.95 , volatility VIX: 11.92
- Change from previous trading day: +0.04%
- Trend: Sideways
- Top 5 Factors which drove the market this day:
- Mixed global cues
- Strong earnings from HDFC Bank and HCL Technologies
- Recovery in banking and FMCG stocks
- Decline in oil prices
- FII buying
- 26-JUL-2023 (Wed)
- Nifty index - closing value: 19,778.30 , open value: 19,733.35 , day’s high: 19,825.60 , day’s low: 19,716.70 , volatility VIX: 12.18
- Change from previous trading day: +0.50%
- Trend: Bullish
- Top 5 Factors which drove the market this day:
- Positive global cues
- Strong earnings from Reliance Industries and Kotak Mahindra Bank
- Rally in IT and energy stocks
- Positive European markets
- FII buying
- 27-JUL-2023 (Thu)
- Nifty index - closing value: 19,659.90 , open value: 19,850.90 , day’s high: 19,867.55 , day’s low: 19,603.55 , volatility VIX: 12.45
- Change from previous trading day: -0.60%
- Trend: Bearish
- Top 5 Factors which drove the market this day:
- Negative global markets
- Profit booking at record highs
- Weakness in auto and metal stocks
- Rise in inflation and interest rates concerns
- FII selling
- 28-JUL-2023 (Fri)
- Nifty index - closing value: 19,646.05 , open value: 19,659.75 , day’s high: 19,695.90 , day’s low: 19,563.10 , volatility VIX: 12.92
- Change from previous trading day: -0.07%
- Trend: Sideways
- Top 5 Factors which drove the market this day:
- Mixed global cues
- Strong GDP data for Q4 FY23
- Recovery in auto and metal stocks
- Decline in oil prices
- FII buying
Outlook for the week starting 31-JUL-2023
The NIFTY 50 index is expected to remain volatile and range-bound in the next week, as investors will be cautious ahead of the RBI monetary policy meeting and the US Fed meeting. The index will also react to the Q1 FY24 earnings of some of the key sectors such as auto, pharma and telecom. The index will also take cues from the global markets, the COVID-19 situation and the FII activity.
The following bullet points summarize the top 10 summarized predictions and factors anticipated to drive the market for the next week:
- The RBI monetary policy meeting on August 2, 2023, which is expected to keep the repo rate unchanged at 4% and maintain an accommodative stance, given the uncertain economic outlook and the rising inflation
- The US Fed meeting on July 31-August 1, 2023, which is expected to signal a tapering of its bond-buying program and a possible rate hike in 2024, given the strong economic recovery and the rising inflation in the US
- The Q1 FY24 earnings of some of the key sectors such as auto, pharma and telecom, which are expected to show mixed results, depending on the impact of the COVID-19 second wave and the lockdown restrictions on their businesses
- The global markets, which are expected to remain volatile and uncertain, due to the rising COVID-19 cases in some countries, the geopolitical tensions between the US and China, and the corporate earnings season
- The COVID-19 situation, which is expected to improve gradually, as the vaccination drive picks up pace and the lockdown restrictions ease in most states
- The FII activity, which is expected to remain subdued or negative, as FIIs may book profits at higher levels or shift their funds to other emerging markets, due to the valuation concerns and the currency risk
- The domestic macroeconomic data, such as the GST collections, the PMI data, the core sector output data and the auto sales data, which are expected to show a recovery in July 2023, after a slump in June 2023
- The technical factors, such as the support and resistance levels, the moving averages and the indicators, which are expected to guide the market direction and momentum
- The sectoral rotation, which is expected to favor defensive sectors such as IT, FMCG and pharma over cyclical sectors such as metal, banking and auto, due to the uncertain economic outlook and the earnings visibility
- The stock-specific action, which is expected to be driven by the earnings announcements, the corporate news, the analyst ratings and the market buzz
Disclaimer:
The above article is based on the information available from sources
and does not constitute any investment advice or recommendation. The
predictions and factors mentioned in the article are subject to change
depending on the market conditions and other developments. The readers
are advised to do their own research and analysis before making any
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