A base visually represents a great stock’s need to take a break. After a nice run-up in price, preferably 30 percent or more, such a stock will decline — in most cases, mildly.
Weekly Big Picture: Nifty Escapes Distribution Day; Mahindra and Mahindra Signs Deal with Ford Motors
Market Pulse
Confirmed Uptrend
Weekly Action
Benchmark indices closed positive. Nifty, +0.9%; Sensex, +1.0%; Nifty Midcap, -0.5%; Nifty Smallcap, -0.9%; and Model Portfolio, +1.1%.
Weekly Market Review
The Nifty advanced 0.9% during the week. The index opened the week on a positive note amid strong buying in Tata Consultancy Svs., Hdfc Bank, and Tata Motors. Continuing the positive trend, the Nifty closed Tuesday’s trade on a high note and hit a new high of 11,810.95. However, the index faced some sell-off on Thursday as all the sectors ended up in the red.
On the sectoral front, Nifty Auto (+2.2%) emerged as the top gainer for the week followed by Nifty Metal (+1.3%) and IT (+1.1%). On the flip side, Nifty PSU Bank (-2.7%) was the top loser followed by Nifty Media(-2.6%) and Realty (-1.9%).
This week, on Tuesday, we changed the market status to a Confirmed Uptrend from Rally Attempt as the index closed above its previous all-time high of 11,761, which was proving to be a hard resistance over the last two weeks.
Earnings in the upcoming week:
- April 23: ACC Cement
- April 24: Indiabulls Housing
- April 25: Axis Bank
- April 26: Yes Bank
- April 26: HDFC AMC
- April 26: Hero Motocorp
Stocks in News
Mahindra & Mahindra: The Company signed a deal with the Indian unit of Ford Motors to develop midsize sports utility vehicles in India. Ford will invest Rs 6.8B for the development of vehicles over a period of 10 years. The stock was down 0.5% today.
RBL Bank: The Bank reported its Q4 FY19 results. Its lending grew 35%, led by wholesale lending that grew 25% and non-wholesale lending (44% of loan portfolio) that rose 49%. The NIM growth was 4.1%. The GNPA and NNPA recorded at 1.38% and 0.69%, respectively. The stock was down 0.7% today.
Ashoka Buildcon: The Company was awarded an order worth Rs 443.23 crore from Rail Vikas Nigam. The construction work, as per management, is expected to complete in 36 months. The stock was up 0.4% today.
What do you think? Please email us any questions or comments.
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Stay in Step with the Stock Market – MarketSmith India Webinar | 16 April 2019
[embedyt] https://www.youtube.com/watch?v=9PnIyALSbdo[/embedyt]
Stay in Step with the Stock Market – MarketSmith India Webinar covers the following topics:
• General Market Direction
• A look back at the Indian Stock Market
• What investors should do now
Daily Big Picture : Nifty Makes New All-time High; Private Banks Shine
Today’s Action
Nifty, +0.8%; Sensex, +1.0%; Model Portfolio, +0.8%; MSI Ind 47, +0.6%; Nifty Midcap, -0.03%; Smallcap, +0.0%.
Daily Market Review
Market Status: Confirmed Uptrend Continue reading “Daily Big Picture : Nifty Makes New All-time High; Private Banks Shine”
Why counting bases is important in long rallies
All strong rallies of growth stocks start from a sound base. Many a time, these leaders extend over multiple rallies, which yield powerful returns over the years.