Mar­ket View

Dalal Street Investment Journal - - CONTENTS -

Mar­kets have fi­nally bro­ken the shack­les and have at­tempted to set­tle above the cru­cial sup­port lev­els. Nifty clos­ing above 10,000 lev­els is some­thing that will cheer the in­vestors. The Septem­ber se­ries be­gan with low­est open in­ter­est in the in­dex for cal­en­dar year 2017. How­ever, we have been con­sis­tently ob­serv­ing good amount of build-up in both in­dices, in­di­cat­ing re­vival of sen­ti­ment among the traders.

Sen­sex inched up by 1.57 per cent in the past 15 days even as Nifty gained 2.14 per cent. The broader mar­kets out-per­formed the ma­jor bench­mark in­dices in the past two weeks, with Mid-cap in­dex gain­ing 3.85 per cent and Small-cap in­dex climb­ing 5.08 per cent.all of the sec­toral in­dices gained over the past 15 days, ex­cept the IT in­dex, which de­liv­ered neg­a­tive re­turn of 1.5 per cent.

Metal in­dex gen­er­ated 8.48 per cent re­turns, Realty in­dex was up by 5.24 per cent and Bankex gained nearly 2 per cent in the past cou­ple of weeks.

Glob­ally all the ma­jor in­dices gained over the past 15 days. Dow Jones was up by 0.88 per cent, S&P 500 by 1.71 per cent and NAS­DAQ by 2.07 per cent.

Euro­pean mar­kets out­per­formed glob­ally, with the Ger­man DAX be­ing the high­est gainer, climb­ing up by 4.43 per cent. France’s CAC40 was up by 2.88 per cent and while UK’S FTSE 100 inched up by 1.04 per cent.asian mar­kets un­der­per­formed its global peers, but re­mained in the pos­i­tive ter­ri­tory. Nikkie gained 0.93 per cent, Hang Seng gained 0.68 per cent and Shang­hai was up by 0.33 per cent.fiis turned net sell­ers in the In­dian mar­kets, with net sales fig­ures of Rs 4586.72 crore. The DIIS were net buyers in the mar­kets dur­ing last fort­night to the tune of Rs 3619.7 crore.

The re­cent GDP data re­flects slow­ness in the growth in econ­omy. In­vestors seem to be ig­nor­ing the near-term pain and fo­cus­ing on the long term out­look. The geopo­lit­i­cal ten­sions em­a­nat­ing from North Korea and Amer­ica threaten to dis­turb the pos­i­tive mo­men­tum of the global eq­uity mar­kets. How­ever, in­vestors seemed to have al­ready fac­tored in the risks in the mar­ket prices.

The liq­uid­ity-driven rally may con­tinue and small-cap and mid-cap stocks will con­tinue to at­tract in­vestors with their higher growth tra­jec­tory.

All eyes will now be on the in­fla­tion data and it is ex­pected that in­fla­tion may inch up a lit­tle bit from the pre­vi­ous month’s level. Look­ing at the im­prov­ing sen­ti­ment in the global mar­kets and not ig­nor­ing the fact that the geopo­lit­i­cal ten­sions may per­sist, the mar­kets at best may trade range-bound.

A break­out on higher side, though not im­pos­si­ble, looks un­likely and may dis­ap­point die-hard bulls in the mar­ket. In­vestors should con­tinue to fo­cus on in­di­vid­ual stocks and look for in­vest­ing op­por­tu­ni­ties in qual­ity stocks across mar­ket caps.

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