K. ARAVIND
The stock market has been trading within a narrow range for the past week. The Nifty traded between 11,800 and 11,377. The Nifty fell to a key support level of 11,377 on Monday but bounced back.
The impact of global markets was evident in the performance of the Indian stock market last week. The US Federal Reserve has announced that interest rates will remain close to zero for the next three years, but the US market has fallen. The slump may have been due to market expectations that the US Fed would make more announcements that would stimulate the economy. The US market has also been adversely affected by the trend towards a correction as US technology stocks have become more expensive.
Pharma and IT stocks were the mainstays of the stock market last week. Last week, the Nifty Pharma index was up 9 per cent and the Nifty IT index was up 8 per cent. The performance of stocks in these two sectors helped the market. Most of the leading pharma and IT stocks traded at 52-week highs.
At the same time, selling pressure was seen in banking stocks. On September 28, the Supreme Court considered the petition seeking waiver of interest during the moratorium period and approached the banking stocks cautiously.
Pharma stocks have performed well over the past few days. On Thursday, we posted a video about the investment potential in pharma stocks. The Nifty Pharma index was up 5 per cent on Friday alone.
The market is expected to remain strong next week at 11,377 points. The next strong support level is 11,200, down from 11,377 points. If it rises to the top, the pressure level is at 11,800. Trading between 11,377 and 11,800 is expected to continue next week.
