Thursday, July, 18,2024

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INVESTORS CAUTIOUS AMID MARKET SURGE

Jaipur: The country’s stock markets have currently reached a new peak every week. Whatever index number the investors imagine, the market is seen crossing that number after some time. Last week also the stock market repeated this and the BSE and Nifty index touched a new peak again. Although there was a slight decline in the BSE index last Friday, but in the last week that ended, the Indian stock markets have registered a rise for the fifth consecutive week. While businessmen are hesitant about new investments due to the continuous rise in the market, the flow of money in the market continues through Systematic Investment Plan i.e. SIP. It is said that at present, every month an amount of 20 to 22 thousand crore rupees is coming in the market from investors through SIP, which is bound to be invested in the stock market. This can also be considered a big reason for the rise in Indian markets. For the stock market, the upcoming budget and the June quarter results of listed companies, in addition to the recent improvement in crude oil prices, are some of the points that may delay the start of profit booking, i.e., may create a downtrend for a few days, but it is certain that the coming time is for the development of the Indian economy, which is also being reflected in the form of the rise in the Indian stock market. At the technical level, 24200 points are now being considered as the support level for the NSE Nifty index, which indicates that if the Nifty index remains above this level, then there is a possibility of Nifty crossing the level of 24500 in the coming time.

Despite a slight decline in the trading session ended on Friday, the BSE index improved by 963.88 points (1.22%) last week and the BSE index closed at 79996.60 points after touching the highest level of 80392.64 points, while the NSE Nifty index rose by 313.25 points (1.30%) and it also closed at 24323.85 points after reaching 24401.00 points. The midcap and smallcap index also kept pace with the improvement in the market and there was a better improvement in it than the original index, which indicates the strength of the market in the coming times.

The rising confidence in the Indian stock market can also be seen as a proof of the start of buying by foreign institutional investors (FIIs), who were sellers till now, who bought goods worth Rs 6874.66 crore last week, although domestic institutional investors (DIIs) who sold goods to FIIs, have also sold goods worth only Rs 385.2 crore. Talking about the bullion market, this week due to new international equations, the prices of gold and silver have once again improved and this week the prices of gold have increased by Rs 1400 per 10 grams and the prices of silver have increased by Rs 4400 per kg. In Jaipur, the price of 24 carat gold improved from last week’s Rs 73,600 per ten grams to Rs 75,000 per ten grams and silver increased from Rs 90,000 per kg to Rs 94,400 per kg.

Regarding the market trend this week, traders say that there are high chances of instability in the market this week. The effect of international reasons will also be seen on the stock market. Traders believe that from the point of view of longterm investment, new investment can be made in companies with strong fundamentals in the market even at present, but if investors work patiently and wait for any profit booking in the market, then there will be more opportunities for profit for them. Some traders say that in the current situation, State Bank of India, Castrol, BEL, BHEL, Zomato, Indus Tower, John Cockrill India etc. can be considered safe investments, but investors should also keep in mind that if there is a decline, then even the shares considered strong are not untouched by it. They also believe that the profit in the stock market is only that which comes into the bank account, hence investors should also keep a regular watch on their portfolio. For investors investing through IPO, no company’s IPO is available in the main board this week, but the IPOs of three companies opened on the MSME platform and one company Sahaj Solar will be able to try their luck despite a huge premium. On the other hand, among the new IPO applications received by SEBI, 9 companies have submitted their Draft Herring ProspectusDRHP and Revised Draft Herring Prospectus-DRHP this week.

(These are the personal views of the author)

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