In the week ended Friday, 17 August 2018, the Sensex gained 78.65 points or 0.21% to settle at 37,947.88, its highest closing level since 9 August 2018. The Nifty 50 index rose 41.25 points or 0.36% to settle at 11,470.75, its record closing high. The BSE Mid-Cap index rose 95.66 points or 0.59% to settle at 16,306.44. The BSE Small-Cap index rose 82.01 points or 0.49% to settle at 16,866.21. Both these indices outperformed the Sensex.
The US-China trade talks, macroeconomic data, progress of monsoon, trend in global markets, investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs), the movement of rupee against the dollar and crude oil price movement will dictate trend on the bourses next week. The Indian stock market will remain shut on Wednesday, 22 August 2018, on account of Bakri Id.
Domestic stocks logged small gains in the truncated trading week gone by marked with high volatility. Indices gained for fourth straight week as investors cheered strong earnings by Indian companies in April-June quarter. The Sensex settled a tad below the psychological 38,000 level. The Nifty settled at record high.
Progress of monsoon will be watched. The India Meteorological Department (IMD) in its weather report on 16 August 2018 said that for the country as a whole, cumulative rainfall during southwest monsoon from 1 June 2018 to 15 August 2018 has been 9% below the Long Period Average (LPA). The June-September southwest monsoon is critical for the country’s agriculture because a considerable part of the country’s farmland is dependent on the rains for irrigation.
Nifty Traders may follow the below mentioned levels for 20.08.2018 to 24.08.2018
Buy above 11,470 for targets of 11,520/11,570
Sell below : 11,420 for targets 11,380/ 11,350
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