What a week it was for Indian benchmark index as market participants witnessed a roller-coaster ride. Rome was not built in a day neither it’s an easy walk to come and break life-time highs as the immense victory of Modi-government witnessed the same, which supported the benchmark indices to re-test the life-time highs. However, the index ended the week with volatile momentum. On Friday, the BSE Sensex closed 0.71% higher this week to end at 39,714.20 and the Nifty ended at 11,922.80, up 0.66%.
On Friday, under the administration of Ramnath Kovind the president of India released the portfolio of new Cabinet or Modi’s new warriors to drive new India. However, Nirmala Sitharaman has been appointed the new Finance Minister, while Amit Shah will handle the Home Ministry.
The boarder the market indices the Nifty 500 closed 0.85% higher during the period. On weekly basis, 11 sectoral indices performed was lackluster as Nifty Auto was 4.3% down, the Nifty Financial services was up by 3.22%, the Nifty FMCG was down by 0.76%, the Nifty IT was up by 3.19%, Nifty Media wwas down by 1.16%, the Nifty Metal was flat, Nifty Pharma fell by 1.85%, the Nifty PSU Banks wasn down by 2.62% and Nifty Realty was above 1.47%. On NSE, 132 stocks were in decline and 629 stocks were in advance and 336 were unchanged on Friday.
Next week, we are not expecting fire-crackers as the index is expected to trade in a narrow range till the Union Budget will disclose by Modi 2.0 government. The second bi-monthly monetary policy will also take place next week whose effect might not be decisive factor. The concerns for limited upside is mainly due ho extremely higher valuations as the Indian benchmark is trading at a Price-Earnings multiple of 29, which is the reason why Street is betting on a capped upside. India Vix has been decreased by 4.04% last week while Annualised volatility is running at 19.92% much higher than the conditions that fulfill the upside. On daily scale, the index is expected to remain on tenterhooks until it close above the psychological resistance 12,000. MACD is hinting for consolidation but showing no signs of divergence and overbought.