Weekly Market Analysis for March 11-15, 2024

Mar 10, 2024

What happened last week?

Nifty continues to make new all-time highs closing at 22493. The price movement has been similar over the past 4 weeks. Nifty going down in the first half of the week and then rebounding to close higher in the second half.

Historically, prices have gained momentum before elections. That seems to be the case this time as well.
On the sectoral front, pharma, energy and banking gained the most. IT and Realty ended lower.
Underperformance continued on the broader indices. The Smallcap Index fell nearly 3%.
Last week, all eyes were on Tata Chemicals as it shot up 40% after news that Tata Sons might get listed. Tata Chemicals owns 3% of Tata Sons, which has a market cap of ₹11 Lac Crores. To understand the activity in Tata Chemicals check this post.
Tata Motors rose 6.3% last week, on its plan to demerge into two listed companies that will run its commercial vehicles and passenger vehicles businesses.
Bajaj Auto gained 10.4% last week driven by strong sales growth in February and share buyback program.
On the Global front, US Markets continue to rally and make record highs. US Federal Reserve Chair Jerome Powell reinforced expectations that the U.S. central bank would reduce its benchmark interest rate this year.
The performance of Japan’s stock markets was mixed over the week, with the Nikkei 225 Index finishing 0.56% lower and the broader TOPIX Index gaining 0.64%.

Let us now dive deeper into FII DII Data.

FII Positions Analysis

Last week, based on FII DII Derivatives positions we had concluded that FIIs are turning less Bearish and DIIs continue to be Bullish.
Both FIIs and DIIs bought around ₹10000 Crores each in the cash market.
FIIs have reduced their short positions on the Index significantly but still are net short. DIIs continue to maintain their relatively low hedges.
FIIs are turning less and less Bearish and DIIs continue to be Bullish.