10/01/2017
Mapping the Market.
A zigzag show followed by a flat closing. The market behaviour on Monday, which was similar to what we saw many times last week, simply meant equity investors on Dalal Street have no conviction, read positive trigger, to take the market higher.
On Monday, the 30-share index settled 38 points down at 27,865, while the 50-share Nifty shed 19 points to end at 8,611.
It looked like a match between the bulls and the bears ended in favour of the latter, despite a statement from Finance Minister Arun Jaitley that there was robust growth in both direct and indirect tax collections during the April-December period.
India Vix, the volatility index of the National Stock Exchange, snapped a three-day falling streak and settled 3.80 per cent higher at 15.48. The index slipped from 15.89 on January 4 to 13.9225 on January 6.
Robust tax collection figures for the nine months ended December 2016 failed to cheer the market on Monday. Finance Minister Arun Jaitley said direct tax collection was up 12.01 per cent at Rs 5.53 lakh crore in April-December 2016 compared with year-ago period, while indirect tax receipts soared 25 per cent to Rs 6.30 lakh crore.
IT stocks edged higher as the rupee weakened past the 68 level against the dollar.A weak rupee boosts revenue of IT firms in rupee terms as the sector derives the lion's share of their revenues from exports.
The coming week will be crucial for the market and key macroeconomic data releases will chart market direction.
Market participants should not be surprised if the next one month remains volatile, as it will be marred by constant domestic news flows, which will be crucial in deciding market direction.
The key to successful investing lies in taking Fundamental Investment calls, while making the best of Tactical Opportunities. Should you like to leverage this opportunity.
You may send an email with your details to [email protected] or [email protected] and our expert team will get in-touch with you to choose the best stocks & MF's to Invest.
