Market Pulse:
Weekly Action:
Two down and three up days: Nifty, +0.9%; Sensex, +0.9%; Nifty Midcap, -0.6%; Nifty Smallcap, -1.2%; Model Portfolio, -0.7%; and MSI Ind 47, -1.6%.
Weekly Market Review:
Benchmark indices closed positive for the third consecutive week, registering their longest rally since August. Both the Nifty and the Sensex closed with a weekly gain of 0.9% each.
India’s frontline indices opened positive on Monday but turned negative as the day progressed, ahead of the release of key macroeconomic data. While Nifty IT bucked the negative trend amid a weaker Rupee, all other indices closed in the red, led by Nifty PSU and Auto.
Continuing the sluggish performance, benchmark indices struggled during early trade on Tuesday, tracking overnight selloff in the global market. However, it made a strong recovery in the afternoon session, buoyed by the falling crude oil prices and strong CPI & industrial production data. All the OMCs and aviation stocks had a strong rally. Apart from OMCs, private banks also contributed to the cause, with strong performance from ICICI Bank and Axis Bank.
Accelerating wholesale inflation weighed on investors’ sentiment on Wednesday, and the market closed on a flat note. OMCs extended gains for the second day in a row along with increases in banking and FMCG stocks. This was offset by losses in export-oriented stocks like IT and Pharma as the Rupee appreciated to 72.27/dollar.
On Thursday, barring Nifty FMCG, all sectoral indices closed in the green as weak crude oil prices kept investor sentiment upbeat. Yes Bankemerged as the top loser for the day following the resignation of its chairman, further exacerbating its top management woes.
Market bulls continued their rally on Friday, driven by gains in Bharti Airtel (+9.3%), Reliance Industries (+2.8%), Housing Development Fin. (+1.9%), and State Bank Of India (+1.9%). However, Yes Bank continued its fall for the second day in a row.
With respect to market direction, the Indian market remains in a Confirmed Uptrend. More follow-through days in the coming session will further strengthen the current uptrend. We will look for leadership among some good stocks to push the markets up and expect multiple high-quality stocks to breakout from their pivot points and reach new highs. Since these are the early days of a new rally, it is important that investors don’t play all their cards at once. We would suggest adopting an investment approach where you begin with a small allocation and increase it as and when we advance further, with consideration to market direction.
On the sectoral front, Nifty PSU Bank (+2.5%), Financial Services (+2.4%), and Nifty Energy (+1.7%) emerged as the top gainers. On the flip side, Nifty Pharma (-3.6%), Metal (-2.3%), and Media (-2.2%) closed lower.
In the coming week, the following events could move the market:
● November 23: Bank loan growth and FX reserve
● November 21: Dewan Housing Q2 Earnings
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