Metal indices only noticeable gainers on NSE, BSE this week; experts say trend looks negative for near term, global cues key trigger next week

Snapping a three-day gain, domestic equity markets corrected more than 1 per cent lower amid volatility on Friday. Benchmarks Nifty50 and the S&P BSE Sensex closed 1.31% lower each on the last trading day of the week.  The Indian markets closed three sessions in the red, while ended positive on two occasions on Monday and Friday this week. The broader Nifty50 slipped below 17,400 to close at 17,374.75, while the Sensex declined nearly 800 points to end at 58,152.92.

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IOC, IndusInd Bank, NTPC, BPCL, Tata Steel, Mahindra & Mahindra and ITC were the only gainers on the two indices in a volatile market on Friday. Grasim, Infosys, HCL, Tech Mahindra, UPL, Wipro, State Bank, Kotak Bank, HDFC Ltd and TCS were top losers.  

Crucial levels 

"Once again, the index has slipped below the50 EMA. The trend looks sideways to negative for the near term. On the lower end, support is visible at 17250-17265. On the other hand, Nifty needs to move above 17640 to change the current bearish trend," said Rupak De, Senior Technical Analyst at LKP Securities.

All broader market and sectoral indices too closed in the negative on multiple factors, including FII, selling, negative global cues and state assembly elections.

Factors driving fall in the market

"Domestic equities swung between gains and losses in this week’s volatile session driven by aggressive FII selling, RBI policy meeting, US inflation data and the upcoming state elections," said Vinod Nair, Head of Research at Geojit Financial Services.  

Though the investors expected the RBI to moderate its policy tone, the central bank surprised the market with a super dovish statement by maintaining its accommodative stance, modest inflation forecast and GDP growth of 7.8% in FY23, said the market expert. "However, the US inflation surged 7.5% on an annual basis with the consumer price index for all items rising 0.6%in January, fueling fears of a hawkish rate hike by the central bank, he said.  
 
How NSE, BSE Indices fared this week?

Meanwhile, the Nifty and the Sensex ended lower by 0.8 per cent each for the week ended February 11, 2022.  

Nifty Metal and S&P BSE metal were top performing indices with gains of 3.3% and 3.8% on the NSE and BSE respectively this week.  

Nifty Commodities (0.6%), Nifty CPSE (0.6%), and Nifty 100 Liqui15 (0.4%) were the only other indices that settled in the green on the NSE for the week ended February 11.  

On the BSE, S&P BSE Enhanced Value, S&P BSE Energy gained 1.3% each and S&P BSE Auto marginally ended in the green by closing 0.1% higher.  

Key triggers for next week

Geojit Financial Services Head of Research Nair said though net purchases by the DIIs is pumping slight optimism into the market, however, it is countered by heavy FII selling. "The direction of the market in the week ahead will be determined by cues from global markets while domestic macroeconomic data and corporate earnings will continue to remain in focus in the near term," he added.

 
(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)