Monthly

Value plus March 2020



Domestic market benchmarks across Large, Mid and Small-cap categories wobbled and dropped by ~7-8% in a volatile week ended 28th February 2020 as global equities started gauging the impact of Coronavirus outbreak on global economic growth and supply chains. The Indian benchmark indices closed negative with S&P BSE Sensex down by 6% and the Nifty 50 was down by 6.4%..

Coronavirus outbreak in Wuhan, city capital of China’s Hubei province has cast a shadow on the prospects of Chinese manufacturing and CAPEX recovery in CY2020. Although Chinese Government’s early warnings and rapid response has contained the death count to ~2900, confirmed infected cases have crossed ~83,000. Concerns’ surrounding the temporary impact on Chinese economy has spurred global sell-off in riskier assets and crude oil & gas market took a knock. Oil price fell more than 13% during the February month. The USD/INR gained of 1.38% in the month of February.

In this issue:

  • Movers and Shakers
  • Market Outlook
  • Nifty Technical Outlook
  • Stock Pick
  • Auto Sales
  • Mutual Fund
  • Key Events
  • Economic Data Wrap Up

On the monthly chart, we are observing a bear candle which suggests that the undertone in the market has turned negative.

 

In coming month if Nifty trades and close above 11404 level then it is likely to test 11717 – 12029 – 12273 levels. However, if Nifty trades and close below 11000 level then it can test 10687 – 10375 – 10011 levels. 

 

At present the monthly trend has turned down. On the downside 11000 is crucial support level. Hence, as long as Nifty holds 11000 level there is high probability that a bounce up to 11717 – 12029 – 12273 level cannot be ruled out. Since the trend is down pull-back rally is likely to attract selling pressure. Hence, one needs to adopt cautious approach at current levels 


Tags: Auto SalesKey EventsMutual FundMovers & ShakersMarket OutlookStock PicksNifty Technical OutlookEconomic Data Wrap Up


Arihant's January Investment Newsletter is now available #ValuePlus.
Click here to download full pdf report.

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