Stock Watch: The George Soros impact
By Amit Sinha*
Weekly Insights: Technical
Week: February 10-17, 2023
Indian Stock Market Indices status as of day closing 17 February 2023:
Sensex: 61002 (-316.94)
Nifty 50: 17944 (-91.65)
Nifty Bank: 41131 (-499.6)
George Soros – A hedge fund tycoon and philanthropist, Aged 92, (New York) has put the Indian nation in frenzy by making some short and negative outlooks in his speech on Friday, February 17, 2023, on the Indian democratic set-up, its economy, Adani’s manipulation of stock prices and also hinted at [Prime Minister] Narendra Modi – Gautam Adani connivance story. Soros is known for his shorting of Great Britain Pounds (GBP) way back in 1992 and it broke the Bank of England. He is regarded as a very knowledgeable person in World Stock Market although he is off-trading now. His speech was obviously not taken well by the Indian Government, Indian Media, and the opposition parties. There is a lot of resentment brewing all across, and his statements look to be more of a political attack on India.
We have to wait and watch for further reactions across the media, the government’s response, as well as the Stock Market. We can expect the stock market to plunge further for the next 2-3 days due to this effect. Time to stay cautiously optimistic.
As it is, the benchmark indices snapped a three-day up-run and after Friday’s [February 17, 2023] lower opening, the fall was a bit sharp. The 18000 crucial mark for the Nifty 50 is posing to be a tough decisive hurdle to break and to sustain above it. The global market cues have also been negative citing the latest US strong economic data and further hawkish comments by two FED officials adding more fuel to the fire.
The derivative market tried to keep Adani Group’s flagship company Adani Enterprises and Adani Ports afloat. However, the Cash Market, which cannot be manipulated (by buying the derivatives- future or options), has been on the decline for the rest of the Adani Group’s stocks. The overall market sentiment is cautiously bearish and we can expect further negativity flowing into the market in near future.
The downtrend persisted but we saw some stock-specific positive upswing movements by the latter end of the week; Reliance Industries, HDFC Twins and some infrastructure – Cement, and FMCG stocks tried to keep the market at some relative strength. Nifty 50 closed at 17944, still unable to decisively break the 18000 barriers on the upside which could bring some breakout momentum up to 18200 as the next hurdle on the charts. The movement was mostly volatile during the trading hours throughout the week but was bottled inside the support and resistance levels of 17700-18200 respectively. Nifty Graph (below) on the daily time frame being teased by the 18000 level.
Next Week Outlook: February 20-24, 2023
It seems Hindenburg’s report was not enough to create panic and havoc in the market. Joining the fray are more eminent personalities such as George Soros who were on the sidelines, now opening up and voicing their negative sentiments further on Adani and attacking Modi and India’s economy as well. And it seems the impact will be there for some time to come.
Disclaimer: The opinions expressed within the content are solely the author’s (not a SEBI registered advisor) and do not reflect the opinions and beliefs of the website or its affiliates. You should consult a qualified broker or an independent financial advisor before making any investment.
The writer is a long-term investor/trader. The views expressed are personal.
