Last week – review
Indices closed mixed this week as Nifty 50, SENSEX & Banknifty ended with around 1% gain, while Mid-cap 100 & Small-cap 100 closed with loss of around 1%. GDP data released on Thursday after market hours provided much needed rally from lows of the week to record high on major indices. Mid-cap & Small-cap underperformed this week as SEBI asked for further disclosure and regulation from Mutual fund.
Technical Insight
• Nifty could see fresh upside above 22446. Nifty range for this week could be 22297 to 22796. Nifty above 22297 is seen as fresh break-out.
• Banknifty move on Friday can be seen as big positive and now immediate support @ 47052 and trend remains positive till it holds 47052.
Approach on Technical: Friday’s move after strong GDP data on Thursday after market closing has change direction in short term. Last Wednesday & Thursday market remain under pressure.
Nifty @ 22096 & Banknifty @ 46562 to act as important and decisive support level. Technical chart has turned positive and could test higher level. Nifty is expected to test 22446 & 22796. Banknifty likely to test 47748 & 48636. We see Friday’s move as big trigger as Nifty 50 index made fresh high and could open further upside.
Fundamental Insight
1) India’s GDP Grows 8.4% In Q3 Surpassing Estimates; Full-Year Growth Pegged At 7.6%
The gross domestic product grew 8.4% over a year earlier in the October-December quarter, according to the latest estimates released by the government’s statistical agency. Gross value added, which strips out indirect tax and subsidies, is estimated to have grown 6.5%.
2) Fiscal Deficit Widens To 64% Of Revised Estimates till January
3) India’s GST Collection Rises 12.5% To Rs 1.68 Lakh Crore in February
4) Cabinet Nod for Three Semiconductor Units Entailing Rs 1.26 Lakh Crore Investment
Equichain Wealth Advisors: Market View & Strategy
Nifty closed at fresh 52-week high lead by broad base rally from banking to infrastructure sector. GST Collection for February came at 1.68 lakh crores, records 12.5% growth compared to previous year while decline compared to previous month’s collection of 1.74 lakh cores.
We see recent development as fresh positive triggers and we may find opportunity to deploy fund available. In last few weeks, we have been underweighted as we were expecting correction, but market witness sideways correction / consolidation and Friday ‘s rally changed the sentiment. Q3FY24 GDP number just ahead of election could limit the downside. Any correction could be seen by market as buying opportunity as strong domestic inflows is now backed by strong economic data