Category: Special Articles

Posted on

Market Condition and How to Approach the Markets this Week

Where are we?

The week started with weak IIP data for November, which was at a 17-month low of 0.5%. Markets reacted negatively to the data and the Nifty lost 0.5% on Monday. It was the only loss day during the week. However, other key macroeconomic indicators, CPI (2.19%) and WPI (3.8%), for December, gave a ray of hope for a probable rate cut by the Reserve Bank of India. Over the next four days, the Nifty posted positive returns. The overall return for the week was +1.0%.

With greater-than-expected earnings, Reliance advanced 7.99% during t Continue reading “Market Condition and How to Approach the Markets this Week”

Posted on

Market Condition and How to Approach the Markets this Week

Current Market Status

The Nifty shed 1.2% in the first week of 2019. It added a distribution day on Wednesday, taking the total count to four. Amid turmoil in developed market indices, FIIs sold stocks worth more than ~70,000 crore in 2018. Despite that, the Indian market showed resilience with DIIs emerging as net buyers with accumulation of more than 1 lakh crore. Continue reading “Market Condition and How to Approach the Markets this Week”

Posted on

Market Condition and How to Approach the Markets this Week

Current Market Status

While major global markets are down 10-12% YTD, the Nifty 50 has managed to deliver ~4% returns. In December so far, Indian markets have seen net FII selling of Rs. 2,026 crore while DIIs have also sold stocks worth Rs. 43 crore. Over the last few days, the U.S., Japan, the U.K., and key Asian markets have fallen 4-6% in a week. The Nifty 50 has managed to stay positive in December, but the volumes have dried up in recent sessions. Continue reading “Market Condition and How to Approach the Markets this Week”

Posted on

Market Condition and How to Approach the Markets this Week

Current Market Status

The month of December started with a weak performance in the market. The Nifty and the Sensex lost 1.7% and 1.4%, respectively, during the week. Except Nifty IT (+0.2%), all other indices gave negative returns for the week. Nifty Pharma (-6.4%) and Auto (-4.3%) were the worst performers. The Nifty Midcap and Smallcap have also faced the wrath of selling pressure as they both lost 2.6% during the week.

According to MarketSmith India’s methodology, at the end of the week, Nifty Bank, Financial Services, IT, Energy, FMCG, and Auto are in a Confirmed Uptrend. Metal is in a Downtrend whereas Realty and Pharma are in a Rally Attempt. The YTD returns for the Nifty and the Sensex were 1.5% and 4.7%, respectively. Continue reading “Market Condition and How to Approach the Markets this Week”

Posted on

Industry Update: November 2018

On November 2, the Indian market was moved to a Confirmed Uptrend.  Since then, the Nifty has added two distribution days. However, further accumulation of distribution days could lead to change in market status to an Uptrend under Pressure. The US market is currently in a Confirmed Uptrend.  In November, we added stocks primarily from the Pharma and Consumer sectors in our India Model Portfolio.

India’s GDP growth was at 7.1% y/y during the July-September quarter, its lowest in three quarters. Construction and Manufacturing grew at 7.8% and 7.3% respectively, while Mining contracted by 2.4% for Q2. Continue reading “Industry Update: November 2018”