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Stock market weekly roundup: Investors to seek direction from OPEC meet, RBI monetary policy

03:13 PM Oct 02, 2021 | Ankit Pareek

Indian equity bourses lost nearly 2.1percent during the week gone by amid weak global cues. The entire week remained highly eventful and sentiments were haunted following concerns over supply disruptions, Evergrande debt woes, US debt ceiling debate and bond taper plan.

While weak Chinese economic data further dented market sentiments, heavyweight banking and IT stocks like HDFC Bank, ICICI Bank, Infosys and TCS were among the top contributors to benchmarks losses this week.

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However, benchmark losses were partially offset by gains in energy and power stocks. Multi-year high energy prices and power shortage in world’s largest electricity consumer China kept energy and power stocks on buying radar of investors.

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On the other hand, IT index declined nearly 5 percent and was among the worst index performer tracking downfall in Nasdaq index as treasury yield jumped following fear of Fed taper plans.

Going ahead, investors will keep a close eye on OPEC and non-OPEC ministerial meeting, RBI monetary policy and PMI data. Apart from this, US debt ceiling and update on Evergrande debt will remain under investor’s radar.

On charts, the bears were into the picture throughout the week as market players were cautious due to the weak global clues. Over a week, the benchmark index fell almost 1.80 percent to close at 17,532.05 levels while Bank Nifty dragged more than 1.6 percent to settle at 37,225.90 levels.

On a sectoral front, NIFTY IT was the top loser and closed with a loss of 5.21 percent while Nifty PSUBANK & Oil & Gas Sector were the top gainer ended 6.07 percent and 5.3 percent respectively on a weekly basis.

Top five gainers during the week were COALINDIA, NTPC, POWERGRID, IOC & ONGC while TECHMAHINDRA, BHARTIRTL, ASIANPAINT & BAJAJFINSERV were the top losers. On a weekly chart, the Index has formed a bearish candle which points out some correction in upcoming days.

On a daily chart, the benchmark index has been trading with lower high, lower low formation, which indicates weakness in the counter. A momentum indicator Stoachastic & MACD also witnessed negative crossover on the daily chart. At present, the Nifty has immediate support at 17400 while resistance comes at 17750 levels.

Top Gainers/Losers this week

Gainers

Multi-year high energy prices and power shortage in world’s largest electricity consumer China kept energy and power stocks on buying radar of investors. Stocks like Coal India, NTPC, Power Grid, IOC and ONGC gained strong buying traction during the week.

Nifty Gainers

Losers

IT stocks: IT index witnessed steep fall during the week tracking underperformance of Nasdaq as treasury yield jumped following fear of Fed taper plans. IT stocks like Tech Mahindra and HCL Tech were the top losers in Nifty index this week.

Nifty Losers

Bharti Airtel: After posting stellar gains, Bharti Airtel witness profit booking during week ahead of the right issue.

Telecom department slaps fine of Rs 3,050cr on Airtel and VIL.

(Ankit Pareek is Research Analyst, Choice Broking)

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