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NIFTY50 Market review for week 31Jul2023 - 04Aug2023

Date wise info on Indian stock market for duration 31 Jul 2023 Monday to 04 Aug 2023 Friday

  • 31 Jul 2023, Monday: Nifty 50 index closed at 19,753.80, up by 0.57% from the previous trading day. It opened at 19,666.35 and reached a high of 19,772.75 and a low of 19,597.60 during the day. The volatility index (VIX) was at 12.63, down by 1.48%. The market was bullish as investors cheered the strong Q1 earnings of some blue-chip companies and the progress of the monsoon season. Some of the factors that drove the market were:
    • Reliance Industries reported a 66% jump in consolidated net profit for the quarter ended June 2023, beating analysts’ estimates.
    • HDFC Bank posted a 16% growth in net profit for Q1, driven by higher net interest income and other income.
    • ICICI Bank announced a 78% surge in net profit for Q1, aided by lower provisions and higher fee income.
    • Larsen & Toubro reported a 287% increase in consolidated net profit for Q1, as its order inflow grew by 13%.
    • The India Meteorological Department (IMD) said that the cumulative rainfall during this year’s monsoon season was 6% above the long period average (LPA) as of July 30.
  • 01 Aug 2023, Tuesday: Nifty 50 index closed at 19,381.65, down by 1.88% from the previous trading day. It opened at 19,463.75 and reached a high of 19,537.65 and a low of 19,296.45 during the day. The volatility index (VIX) was at 13.17, up by 4.28%. The market was bearish as investors booked profits after the recent rally and remained cautious ahead of the RBI monetary policy review. Some of the factors that influenced the market were:
    • The RBI announced that it will conduct a variable rate reverse repo auction for Rs 2 lakh crore on August 2, as part of its liquidity management operations.
    • The GST collections for July stood at Rs 1.16 lakh crore, lower than the previous month’s record high of Rs 1.41 lakh crore.
    • The manufacturing PMI for July fell to 55.3 from 56.4 in June, indicating a slower pace of expansion in the sector.
    • The auto sales data for July showed a mixed trend, with some companies reporting growth and some witnessing a decline due to supply chain issues and rising input costs.
    • The US Senate voted to advance a $1 trillion infrastructure bill, which could boost the global economic recovery.
  • 02 Aug 2023, Wednesday: Nifty 50 index closed at 19,526.55, up by 0.75% from the previous trading day. It opened at 19,655.40 and reached a high of 19,678.25 and a low of 19,423.55 during the day. The volatility index (VIX) was at 12.87, down by 2.28%. The market was bullish as investors awaited the outcome of the RBI monetary policy review and reacted positively to some corporate earnings and macroeconomic data. Some of the factors that supported the market were:
    • The RBI kept the repo rate unchanged at 4% and maintained an accommodative stance, while revising the GDP growth projection for FY23 to 9.5% from 10.5%.
    • Tata Steel reported a consolidated net profit of Rs 9,768 crore for Q1, compared to a net loss of Rs 4,648 crore in the same quarter last year.
    • Bharti Airtel posted a consolidated net profit of Rs 284 crore for Q1, reversing a net loss of Rs 15,933 crore in the same quarter last year.
    • The services PMI for July rose to 45.4 from 41.2 in June, indicating a slower pace of contraction in the sector.
    • The Nikkei Asia300 index gained 0.8%, tracking the gains in Wall Street and European markets.
  • 03 Aug 2023, Thursday: Nifty 50 index closed at 19,311.25, down by 1.10% from the previous trading day. It opened at 19,248.90 and reached a high of 19,328.65 and a low of 19,208.75 during the day. The volatility index (VIX) was at 12.42, down by 3.49%. The market was bearish as investors turned cautious ahead of the US jobs data and the outcome of the OPEC+ meeting. Some of the factors that weighed on the market were:
    • The US non-farm payrolls data showed that the economy added 943,000 jobs in July, higher than the expected 870,000.
    • The OPEC+ group agreed to increase oil production by 400,000 barrels per day from August to December, in a bid to balance the demand and supply in the global market.
    • The RBI imposed monetary penalties on 14 banks for non-compliance with certain provisions of directions issued by it on ‘Lending to Non-Banking Financial Companies (NBFCs)’.
    • The Supreme Court dismissed a plea by telecom companies seeking correction of alleged errors in calculation of adjusted gross revenue (AGR) dues.
    • The Nikkei Asia300 index fell 0.6%, tracking the losses in Wall Street and European markets.
  • 04 Aug 2023, Friday: Nifty 50 index closed at 19,517.00, up by 1.07% from the previous trading day. It opened at 19,462.80 and reached a high of 19,538.85 and a low of 19,436.45 during the day. The volatility index (VIX) was at 13.32, up by 7.24%. The market was bullish as investors cheered the robust Q1 earnings of some IT and pharma companies and the easing of covid-19 restrictions in some states. Some of the factors that lifted the market were:
    • Infosys reported a 22.7% growth in consolidated net profit for Q1, beating analysts’ estimates.
    • Cipla posted a 23.3% increase in consolidated net profit for Q1, driven by strong sales in the domestic and international markets.
    • HCL Technologies announced a 9.9% rise in consolidated net profit for Q1, along with a 14.6% growth in revenue.
    • Maharashtra eased the covid-19 curbs in 25 districts, allowing shops, malls, restaurants and public transport to operate with some restrictions.
    • The US ADP employment report showed that private payrolls increased by 330,000 in July, lower than the expected 695,000.
     

 

Top 10 Summarized predictions and factors anticipated to drive the market for week starting 07 Aug 2023 Monday

  • The market is expected to remain volatile and range-bound in the next week, as investors will track the covid-19 situation, global cues, corporate earnings and macroeconomic data.
  • The covid-19 cases in India have declined to around 40,000 per day, but some states have reported a rise in infections due to the Delta variant. The vaccination drive has also picked up pace, with over 48 crore doses administered so far.
  • The global markets will react to the US jobs data, which showed a strong recovery in the labor market and raised expectations of an early tapering of stimulus by the Federal Reserve.
  • The OPEC+ meeting outcome will also influence the oil prices and the energy stocks, as the group decided to increase production gradually to meet the rising demand.
  • The corporate earnings season will continue in full swing, with some prominent companies such as Tata Motors, Mahindra & Mahindra, Hindalco Industries, Britannia Industries and Sun Pharma scheduled to announce their Q1 results.
  • The macroeconomic data will also be in focus, as the government will release the industrial production (IIP) and inflation (CPI and WPI) data for July.
  • The monsoon season will also be closely watched, as it has a significant impact on the rural demand and agricultural output. The IMD has forecast normal rainfall for August and September.
  • The FII and DII activity will also be crucial for the market direction, as they have been net sellers in the past few sessions amid profit booking and global uncertainty.
  • The technical indicators suggest that the Nifty 50 index is facing resistance at 19,600-19,650 levels and support at 19,300-19,250 levels. A decisive breakout or breakdown from this range will determine the next trend.
  • The market sentiment will also depend on the developments related to the covid-19 vaccine approval, regulatory actions, legal issues and geopolitical tensions.
 

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 investment decisions based on the article. The author and the publisher are not responsible for any losses or damages arising from the use of the article. 

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