On the fourth day of the week, the Indian stock market saw a sharp decline. The Indian stock market rallied on Wednesday on the news of Donald Trump being elected as the President of the United States and now a day later, on Thursday, the Indian stock market rallied, besides domestically Cochin Shipyard, Bajaj Electricals, Ircon International, Lupine, M&M and others. Volatility was seen as the quarterly results of the companies were due.
All eyes are now on the Federal Reserve's policy. On which a decision can be taken today. The Fed is expected to reduce the benchmark interest rate by approximately 25 basis points. On the other hand, due to mixed global signal and F&O expiry, the Indian stock market was also in a tizzy.
On BSE, the midcap index closed down 0.67% and the smallcap index closed down 0.44%. Talking about the various sectoral indices, metal, utilities, commodities, realty, power, auto, telecommunication, consumer discretionary, consumer durables stocks saw heavy selling on BSE, while all other sectoral indices also closed with a decrease. Out of a total of 4053 scrips traded on BSE, decliners were 2134 and gainers 1821, while 98 scrips were unchanged. While in 1 stocks there was a bearish lower circuit of only sellers against a bullish upper circuit of only buyers in 8 stocks.
State Bank of India 0.53% and TCS Ltd. in S&P BSE Sensex. rose 0.26%, while Tata Motors 2.36%, Tech Mahindra 2.21%, JSW Steel 1.99%, Sun Pharmaceutical 1.96%, Asian Paints 1.86%, IndusInd Bank 1.82%, Ultratech Cement 1.82%, Titan Company Ltd. 1.81%, Tata Steel 1.76%, ICICI Bank 1.75%, Power Grid Corporation 1.74%, Reliance Industries 1.50%, Bharti Airtel 1.44% and Bajaj Finance were down 1.34%.
Nifty Future Technical Levels NIFTY FUTURE CLOSE :- ( 24281 ) :- The next swing is likely to see Nifty Future touch the all-important level of 24088 points first and 24008 points from 24373 points to 24404 points, all-important strong stoploss of 24008 points. Cautious positioning around 24008 points.
Bank Nifty Future Technical Levels Bank Nifty Future Close :- ( 52175 ) :- The next swing is likely to touch the all-important level of 52404 points from 52008 points to 51880 points, 51808 points with respect to the first and all-important strong stoploss trading of 52474 points. Cautious positioning around 52474 points.
Specific technical level regarding future stock Tech Mahindra (1658):- The share price of this leading company of Mahindra Group is currently trading around Rs.1626. Buyable with a stoploss of Rs.1606, this stock is likely to register a price of Rs.1674 to Rs.1680 in a short period of time…!! Bullish focus on Rs.1694…!! Bharti Airtel ( 1581 ) :- Positive breakout around Rs.1533 as per technical chart…!! Buyable with support of Rs.1508, this stock is likely to register a price of Rs.1597 to Rs.1606…!! HCL Technology ( 1832 ) :- According to the technical chart, this stock from the Computers – Software & Consulting sector is likely to trade profitably around Rs.1848 with a target price of Rs.1808 to Rs.1787. Consider a trading stoploss of Rs.1860..!! Voltas Ltd. ( 1760 ) :- Registering overbought position around Rs.1788, this stock sellable with stoploss of Rs.1797..!! It is likely to show the price of Rs.1737 to Rs.1717 in phases…!! Consider bullish above Rs.1808…!!
Future direction of the market… Friends, the decisions taken by the American President as well as the lending policy of the US Federal Reserve affect the stock markets around the world. The federal is an independent government agency whose mission is to set monetary policy. Which ensures economic growth, low inflation, low unemployment. Its monetary policy stance can affect the stock market, although the Fed does not typically consider stock market performance. Different factors are at work to influence its decisions. In terms of returns, the Indian stock market gave the highest return of 120% in the tenure of the last five American presidents from 2009 to 2013 when Barack Obama was president. The lowest return was also in Barack Obama's second term.
Obama's second term from 2013 to 2017 saw only a 34% return. During the years 2005 to 2009, when George Bush was the President of America, the Indian stock market returned 47%. While the Indian stock market has returned 59% so far during the tenure of current President Joe Biden. The Indian stock market returned as high as 84% in the first term of Donald Trump's US presidency. Now how much compensation is received in his second term will be known in the future.
The author is a SEBI registered research analyst and proprietor of Investment Point.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
