Weekly Big Picture – Bears Take Over Control; Nifty Tests 10,150

MARKET PULSE:

Status: Confirmed Uptrend

Highlights:

One up day, Four down days

Weekly Market Review:

Indian Market witnessed some heavy distribution this week, as the Nifty and the Sensex are trading 3% below their all-time high. The Nifty has breached its 50-DMA, and it is trading marginally above its key support level of 10,120. The sell-off in the market could be attributed to Korean tensions, F&O expiry, and the September Quarter GDP data, which was announced yesterday.

The Nifty started the week at 10,361.05 and traded in the range of 10,108.55-10,409.55 to end at 10,121.80, down 2.58% from last week’s close. The BSE Sensex also ended the week with a loss of 2.51%, to settle at 32,832.94. The index was in the range of 32,797.78-33,770.15.

Broader Indices also sold off this week; the Nifty Midcap indices lost 1.46%, while the Smallcap gave fell 0.77% in this volatility-laden week.

The MarketSmith IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics, outperformed the benchmark indices and gained 0.73% this week.

Barring Nifty Realty (+0.42%), all sectors ended in red this week, the top losers were Nifty PSU Bank (-6%), Metal (-3.93%), and Energy (-3.27%).

This week both the indices added two distribution day each; thus, taking the count to four on both the indices. The Indian market remains in Confirmed uptrend.

The macroeconomic data, announced yesterday, reported the September Quarter GDP at 6.3%; while the fiscal deficit increased to 96% of the budgeted target, for the fiscal year ending March 2018.

The following data to be released on December 6, could turn out to be a market mover in the next week:

-Cash Reserve Ratio

-Interest Rate Decision

-Reverse Repo Rate

-M3 Money Supply

Current Outlook:

– Market environment conducive for new purchases, but remain selective.

– Focus on fundamentally strong stocks breaking out of strong technical patterns.

– Stay disciplined and exercise sound buy and sell rules.

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