Share market weekly review: Bulls ruled the stock markets during the week gone by, with the Sensex and Nifty ending with gains of over 3% each. Rupee appreciation on the back of a decline in crude oil prices, along with positive global markets and influx of foreign funds, added to the upward trajectory of the equity indices. The rupee gained past the 70 per dollar mark during the week, rising to its highest level in three months.
“We have seen a rebound in the market with a positive closing on everyday due to improvement in domestic fundamentals owing to steep fall in oil prices to bearish territory and stronger rupee,” said Vinod Nair, Head Of Research at Geojit Financial Services. “Further, recapitalisation announcement of Rs 42,000 crore to PSU Banks likely to provide respite to current liquidity issues, boosted the sentiment,” he added.
What to expect next week
Next week, investors and traders will have to keep an eye out for a couple of events, both on the global and domestic level, said market experts. Crucial events for the markets include outcome of US-China meet during the G20 summit and the upcoming OPEC meet on the global front.
On the domestic side, traders will keep a close watch on the monetary policy meet of the Reserve Bank of India, Nikkei Manufacturing and Services PMI Data, as well the impact of the Q3 GDP data along with fiscal deficit released after market hours on Friday.
“For the next week, we have Nikkei Manufacturing and Services PMI Data, which measures the level of activity, to be released. RBI will also have meeting next week to decide on monetary policy (December 5),” said Mustafa Nadeem, CEO, Epic Research. “As we enter the new month, these are the several factors that should keep us on edge of our seats along with state election outcome due on December 11,” Nadeem added.
Stock picks for next week
Among stock picks for next week, Epic Research has suggested ESCORTS. “Escorts can be seen closing on positive note in last trading session. A flag pattern can be clearly seen on the daily chart of escorts which opens up the target up to 740-750 from current levels, buying is recommended in the stock above 710 with a strict stop loss of 700 for the targets up to 740-750 in next week,” Epic Research’s Nadeem said.
Other stocks include WOCKPHARMA (“buy” above 545 level with a strict stop loss below 535 for the targets of 560-570 on intraday basis depending upon a successful break out) and TATAELXSI (recommend “buy” above 1,032 level with a strict stop loss of 1010 for the targets up to 1,050-1,070).
Key takeaways this week
Weekly gains: The headline BSE Sensex surged 1,213 points or 3.5% to close the week at 36,194.30 points. The Nifty 50 of the National Stock Exchange closed 350 points or 3.32% higher week-on-week at 10,876.75 points. IT and financial services sectors outperformed, while metal and commodities underperformed the Nifty.
Top weekly Sensex gainers: TCS (8.56%), Indusind Bank (6.70%), HDFC (5.83%), Wipro (5.66%) and Bajaj Auto (5.50%).
Top weekly Sensex losers: Yes Bank (-13.24%), Sun Pharma (-6.37%), Tata Motors DVR (-4.86%), Coal India (-4.85%) and Bharti Airtel (-4.39%).
Top weekly Nifty 50 gainers: TCS (8.59%), IndusInd Bank (6.73%), Bajaj Finance (6.56%), Zee Entertainment (6.48%) and HDFC (6.15%).
Top weekly Nifty 50 losers: Yes Bank (-13.17%), Sun Pharma (-6.34%), Coal India (-4.58%), Bharti Airtel (-4.38%) and NTPC (-3.90%).
FII/DII activity: Provisional data from the stock exchanges showed that foreign institutional investors invested in stocks worth Rs 2,326.37 crore between November 26-30. Domestic institutional investors, too, purchased stocks worth Rs 2,515.66 crore.
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