This week in a nutshell (August 30th to September 3rd)
This week in a nutshell (August 30th to September 3rd)
Technical talks
NIFTY opened the week on 30th August at 16,776 and closed on 3rd September at 17,324. It made a weekly gain of 3.3%. The index is trading beyond all moving averages and at all-time high levels. 10DMA of 16,880 is the closest support. The RSI (83) suggests that the index is overbought.
Weekly highlights
- Trends for FII and DII activity reversed compared to last week. FIIs were net buyers of Indian equities with an inflow of Rs 68,677 mn. DIIs turned bearish with a net outflow of Rs 14,211 mn.
- As per data released by Ministry of Statistics and Programme Implementation, India’s GDP growth for 1QFY22 is estimated to be 20.1%. This growth is on low base of 1QFY21, where the GDP contraction was 24.4% YoY.
- Ministry of Commerce and Industry released India’s preliminary foreign trade data for Aug-21. According to the press release, India’s merchandise exports for Aug-21 increased 45.2% over low base of Aug-20 and 27.5% over Aug-19. Merchandise imports for Aug-21 increased 51.5% over Aug-20 and 17.9% over Aug-19. The trade deficit widened at USD 13.87 bn in Aug-21 compared to USD 8.2 bn in Aug-20.
- Indian Auto OEMs reported wholesale data for Aug-21. Carmakers were impacted by the global electronic component shortage, leading to production uncertainties. OEMs expect the pain to continue even in the upcoming crucial festive period. Some companies expect Sep-21 production volumes to be lower by as much as 60% of normal levels.
- US jobs data for August came out on Friday and the numbers were lower than street forecasts. Lower job additions could mean that the US Fed may further delay any increase in interest rates.
Things to watch out for next week
- Post the end of 1QFY22 result season, we are in a quiet period with relatively lesser market developments.
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