After a positive start on January 17, the Indian markets remained under pressure for the next 4 trading sessions. For the week ended January 21, 2021, the market remained under pressure due to weak global cues, prospects of tightening monetary policy in the US, rise in US Treasury yields and crude oil prices and continued selling by FIIs. Last week, the BSE Sensex closed at 59,037.18, down 2,185.85 points or 3.57 per cent. On the other hand, Nifty closed at 17,617.2, down 638.55 points or 3.49 per cent.
Looking at different sectors, the BSE IT index lost 6.5 per cent last week. On the other hand, the BSE Telecom index lost 5.8 per cent while the Nifty Pharma index lost 5.2 per cent. The BSE Power Index was up 2.6 per cent. Looking at the broader market, the BSE Midcap index lost 4.3 per cent while the Smallcap index closed with a fall of 3 per cent this week after hitting a fresh high.
Last week, more than 30 smallcap stocks saw an increase of 10-44 per cent. Which includes the names of Precision Wires India, HSIL, Khaitan Chemicals and Fertilisers, Kellton Tech Solutions, OnMobile Global, Vikas Lifecare, Dhanvarsha Finvest, SIS, Pennar Industries, Bharat Road Network and Tinplate Company of India.
On the other hand, there are more than 30 such stocks, which saw a decline of 10-23 percent. These include terlite Technologies, Tata Teleservices (Maharashtra), Urja Global, Hikal, Tejas Networks, Bhansali Engineering Polymers, The Anup Engineering, Dr Lal PathLabs, Jaypee Infratech and Zee Media Corporation.
How can the market move ahead?
Amol Athawale of Kotak Securities says that Nifty has formed a long bearish bar reversal candle on the weekly chart, which indicates further weakness in the market in the short term. Apart from this, closing below the 20 Day SMA of Nifty is also a negative sign. Now support is visible for Nifty at 17500. If Nifty stays above it, then we can also see the level of 17775 then 17900-17950 after that.
On the other hand, if Nifty slips below 17750, then the level of 17400-17300 can also be seen in it.
Ajit Mishra of Religare Broking It says that next week the market will first react to the results of 2 heavy bets Reliance Industries and ICICI Bank Bank. He has further said that weak global cues are taking their toll on the market sentiments at this time. Apart from this, heavy volatility in the market during the results season is troubling the investors. Looking at the index, for any good recovery, Nifty will have to stay above 17600. If Nifty fails to stay above 17600, then it may slip to the level of 17350. Investors are advised to hedge their positions and avoid widening their positions until the market stabilizes.
Vinod Nair of Geojit Financial Services It is said that in the coming week, there may be a lot of volatility in the domestic market. Because the eyes of the investors are on the announcements of the upcoming budget. Since the results so far have not given any enthusiasm in the market. Therefore, in the coming weeks, the market will keep an eye on the results for the next indications.
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