Market Pulse
Uptrend Under Pressure
Weekly Action
The Nifty and the Sensex were up on four days during the week: Nifty, +1.1%; Sensex, +0.8%; Nifty Midcap, +3.2%; Nifty Smallcap, +3.7%; Model Portfolio, +1.0%; and MSI Ind 47, +2.0%.
Weekly Market Review
The Nifty retook its key levels of 200- and 50-DMA during the week, which indicates that the market is gaining its momentum. This week, all sectoral indices ended in the green. Nifty PSU Bank (+5.5%) and Nifty Auto (+4.5%) were the top gainers.
FIIs were net sellers as they dumped stocks worth Rs 2,929.15 crore and DIIs were net buyers as they bought stock worth Rs 3,179.31 crore, for the first four days of this week.
With respect to direction, the Indian market remains in an {Uptrend Under Pressure}. The distribution day count stands at four on both the Nifty and the Sensex. More distribution days in the upcoming sessions will downgrade the market status to a {Downtrend}. The market will be moved to a Confirmed Uptrend if the Nifty retakes 10,942 level (highest during the recent rally). Considering this, we would suggest adopting an investment approach where you begin with a small allocation and increase it as and when market demonstrates technical strength. On the other hand, investors should be prepared to cut their positions in case the market starts to show recurring distribution days and technical weakness.
Stocks in News
Motherson Sumi: Its shares rose as much as 10% intraday on the report of it acquiring German pear Leoni. However, the Company said it was not aware of any such information. At the day’s end, the shares were up 2.9%.
Fortis Healthcare: The Supreme Court of India puts the Company’s sale to IHH Healthcare on hold following a contempt plea by Daiichi Sankyo. The stock was down 6.7% today.