Weekly Big Picture : Broader Indices Continue to Outperform; Energy and Metal Stocks Edge Lower

Weekly Action

Nifty, -0.8%; Sensex, -0.8%; Nifty Midcap, +1.6%; Nifty Smallcap, +0.9%; and Model Portfolio, +1.4%.

Market Pulse Confirmed Uptrend

Weekly Market Review

Nifty started the week on record high of 12,430, but couldn’t sustain it. It fell for three consecutive days and tested its 50-DMA. It rebounded sharply in the next two days and pared its weekly loss to 0.8%. Results of major companies such as Reliance, HDFC Bank, L&T, Axis Bank, and TCS were announced during the week.

On the sectoral front, Nifty Realty (+1.4%) and Media (+1.1%) continued their strength from last week. On the downside, Nifty Energy (-2.5%) and Metal (-2.4%) declined the most.

Looking ahead, we will continue to observe the action looking for both opportune entries into high-quality names and potential signs of trouble in extended names. For our portfolio, we would prefer riding winners, being selective in new entries, and keeping an eye on extended stocks to trim on poor action. 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 the market advances further.

Key News

Jsw Steel: Revenue for the December quarter declined 11.1% y/y to Rs 18,055 crore. EBITDA margin slid 860bps to 13.6%. PAT down 88.3% to Rs 187 crore.

Ultratech Cement: PAT surged over 90% y/y to Rs 711 crore. EBITDA margin improved 380bps to 19.1%. Revenue fell 0.9% to Rs 10,354 crore. The stock was up 2.6%.

Aavas Financiers: Revenue rose 22.9% y/y to Rs 239 crore. PAT was up 20.6% to Rs 68 crore. The stock declined 2.7%.

What do you think? Please email us any questions or comments.

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