Dear patrons, in yet another display of stellar performance, the Indian markets scaled new highs last week. Both the benchmark indices the Nifty as well as Sensex made new lifetime highs in the week. Banking sector proved to be the major booster for indices to reach new highs. Almost all banking stocks were at their all-time high levels last week following robust GDP data and forecast.
Flow of incessant good news for the Indian economy continued last week on the back of impressive GDP figures for Q3FY24. The RBI projected Indian economy to grow by 8% surpassing Government of India's forecast of 7.6% in FY24. Further, rating agency Crisil has forecast Indian economy to grow by 6.8% next fiscal and remain world's fastest growing big economy.
Globally Federal Reserve will declare their monetary policy on 20th March and is expected to maintain status quo. Markets expect rates to come down from as early as May. The Fed chairman's address last week was, however, a misnomer for the markets. The chair indicated that the Fed is ready to cut rates only when economic data supports such rate cut. On the back of these statements, the US markets remained sideways amid volatility.
Let's see what transpired last week and try to forecast what lies ahead for next week.
Nifty, as expected, moved towards 22500 and managed to close a tad below 22500. It was volatile for the week with movement on both sides. Nifty too support around 22200 levels as mentioned in the previous blog. You may read it here Weekly Market Update: Week Ending 2nd March 2024 (amitbajare.blogspot.com). Nifty looks a bit tired and may remain rangebound for the coming week. Action is likely to shift to sectoral indices and certain sectoral indices are likely to outperform the benchmark index while certain other are likely to under perform. Support for Nifty lies around 22300-22200 levels, while on the upside Nifty enters uncharted territory and resistance may be encountered towards 22650-22750 levels.
Bank Nifty's out performance continued last week as well, and it managed to gain in excess of 1% for the week. It moved to touching distance to its all-time high. As expected, it moved up but could not hold on to gains above 48000 and closed a tad above our resistance level of 47800. In the coming week it is expected to move with a positive bias towards lifetime high. Support for BankNifty is placed around 47400-47300 while resistance lies around 48600-48700.
Broader markets may remain range bound, and action may shift to sectoral indices, with a focus on stock specific moves. Traders may look for opportunities in certain sectors for positive returns.
Happy Investing!!!
- "To be a successful business owner and investor, you have to be emotionally neutral to winning and losing Winning and losing are just part of the game.” ~ Robert Kiyosaki
P.S.: This communication is for educational purpose only and does not recommend buying or selling any stock or index. Trade at your own risk.