Weekly Big Picture – IT and Media Stocks Drag Down the Market; Nifty Breaches 200-DMA

Market Pulse

Confirmed Uptrend

Weekly Action

The Nifty and the Sensex started the week with three consecutive gain days but ended with two days of losses. Nifty, -0.5%; Sensex, -0.6%; Nifty Midcap, +0.6%; Nifty Smallcap, +1.6%; Model Portfolio, -0.8%; and MSI Ind 47, -2.0%.

Weekly Market Review

The Nifty started this week with the same momentum as the previous Friday. But the last two days saw selling pressure, resulting in the index breaching its 200-DMA. This week, sectoral indices gave mixed returns. Nifty PSU Bank (+1.8%) and Nifty Metal (+1.6%) were the top gainers, while Nifty IT (-4.3%) and Media (-3.8%) lost the most.

FIIs were net buyers as they bought stocks worth Rs 906 crore and DIIs were net sellers as they dumped stocks worth Rs 652 crore, in the first four days of this week.

With respect to direction, the Indian market was changed to a Confirmed Uptrend on Wednesday. The distribution day count stands at five on the Nifty and three on the Sensex. More distribution days in the upcoming sessions will downgrade the market status to an Uptrend Under Pressure.

A follow-through day in the next few sessions will strengthen the current uptrend. We would like to see multiple high-quality stocks breakout from their pivot points and make new highs. For now, we recommend investors to stay selective and buy only high-quality growth ideas that are exhibiting strong relative strength compared with the market.

In the coming week, the following events could move the market:

●       December 28: Foreign exchange reserves.

Stocks in News

Aurobindo Pharma: The Company received a final nod from USFDA to manufacture and market tablets for the treatment of hypokalemia. The stock was down 1.0% today.

Bharti Airtel: The Company, along with Ericsson, claimed that they have achieved a download speed of 500 Mbps in indoor conditions and 400 Mbps in outdoor conditions on smartphone in the first trial of Licensed Assisted Access technology. The stock was down 2.7% today.

Action in Leading Stocks

Leaders Up on Volume: Vimta Labs (+20.7%), Gujarat Ambuja Exports (+4.8%), Aditya Fash.& Retail (+4.0%)

Leaders Down on Volume: Newgen Software Techs (-4.5%), Hnywell.Automation Ida. (-5.6%), United Spirits (-1.0%)

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