Weekly Big Picture : Banks Resume their Rally; FMCG Continues to Underperform

Market Pulse

Rally Attempt

Weekly Action

Benchmark indices closed positive for the third consecutive week. Nifty, +3.6%; Sensex, +3.7%; Nifty Midcap, +2.8%; Nifty Smallcap, +2.9%; and Model Portfolio, +2.4%.

Weekly Market Review

The Indian markets had a strong week with the benchmark index Nifty50 ending in positive in all the five trading sessions. The Nifty and the Sensex gained 3.6% and 3.7%, respectively, in the week. The Nifty Smallcap (+2.9%) and Midcap (+2.8%) took a minor breather after sharp gains in recent weeks, and underperformed the benchmark indices.

On the sectoral front, all the indices ended in the green for the week indicating strengthening breadth. The Nifty FMCG (+0.03%) and IT (0.9%) continued to underperform other sectors. Nifty Realty (+6.4%) was the top performer whereas the Nifty Bank (+5.8%) saw a further increase in momentum, supported by both PSBs and private banks. On the back of sharp gains, the index made its fresh all-time high during the week. Nifty Metal (+2.1%) continued to gain.

The market status remained unchanged. After we moved the status to a Rally Attempt, the market failed to give a follow-through day. We will look for a legitimate follow-through day on the Nifty before we upgrade the market to a Confirmed Uptrend.

Noteworthy events in the upcoming week:

●March 19: Current Account Data release