homemarket NewsNifty ends week on a positive note, but correction likely as stop losses near critical level
Nifty ends week on a positive note, but correction likely as stop losses near critical level
Among the notable developments this week, Hero MotoCorp saw an 8 percent increase, while Eicher Motors declined 11 percent. Auto stocks Mahindra and Mahindra, Maruti Suzuki and Tata Morors saw all-time highs.
The market concluded the week with overall gains despite the fall on Friday (July 7). Such a decline is not uncommon after a series of eight consecutive positive days. The interesting aspect of the market setup lies around the 19,300 mark, where numerous stop losses are placed. The Nifty managed to close just above that level. If those stop losses are triggered, it could potentially lead to a correction, possibly taking the Nifty towards the 10-day or 20-day exponential moving average.
To provide some perspective, for the Nifty, the 10-day moving average stands at 19,200, while the 20-day moving average is at 19,000. Even during an uptrend, it is perfectly normal for the market to test these moving averages and subsequently rebound. Therefore, there is nothing fundamentally wrong with the market.
Extreme highs and a low
Among the notable developments this week, Hero MotoCorp saw an 8 percent increase, while Eicher Motors experienced an 11 percent decline. The past week saw intense competition in the 350 CC and above motorcycle segment, which was reflected in the market performance.
On the other hand, several other auto stocks made significant gains. Mahindra and Mahindra reached all-time highs, Tata Motors achieved a new record high, and Maruti's stock price surpassed the 10,000 mark, again an all-time high. This was a major point of discussion during the week.
Another notable highlight was the remarkable rally in oil marketing companies, making this potentially one of the best quarters for them.
ITC also reached a fresh all-time high, and there was a substantial rally in Zee Group stocks.
Lastly, the blockbuster listing of ideaForge indicated the market's enthusiasm and how quickly it has picked up. These were the key themes observed during the week.
(Edited by : Shoma Bhattacharjee)
First Published: Jul 7, 2023 5:55 PM IST
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