Weekly Big Picture – Bulls Emerge Victorious In See-Saw Battle

Commentary Teaser-08.12.2017

MARKET PULSE:

Status: Under Pressure

Highlights:

Three up and two down days (one distribution day)

Weekly Market Review:

This week, the movement of India’s benchmark indices does not give a clear picture of the underlying strength in the Indian market. After three subdued trading sessions, the benchmark indices recouped from its previous loss to end the week on a positive note. In the process, both the indices managed to add one distribution day on Tuesday leading to a change in the Indian market status to Under Pressure.

With the continuation of previous week’s selling pressure, the Indian market started off the week on a flat to positive note followed by two down days. Nikkei India Services Purchasing Manufacturing Index on Tuesday and RBI’s monetary policy on Wednesday mounted a selling pressure on the bourses.

However, the Indian market snapped its two-day losing streak on Thursday as buying momentum was observed on hopes of the Bharatiya Janata Party (BJP) winning the Gujarat assembly elections. For Prime Minister Narendra Modi, this is an election more vital than even the Uttar Pradesh polls. The results in Modi’s home state will be a key test for the BJP ahead of the 2019 general elections. The election will take place in two phases on December 9 and 14, 2017. The declaration of results is expected on December 18, 2017.

In the end of the week, the Nifty posted a weekly gain of 1.42% to close at 10,265 whereas BSE Sensex gained 417 points to end at 33,250(+1.27%). In the broader market, Nifty Midcap outsmarted the smallcap stocks as the former posted a 1.64% weekly gain compared with Nifty Smallcap’s 0.84%.

The MarketSmith IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics, gained 0.38% this week.

In a rare scenario, all the sectors ended in a positive territory this week. The top three performers were Nifty FMCG (+3.09%), IT (+2.05%), and Media (+1.84%). The PSU stocks were the weakest of all as the indices posted a mild gain of 0.01% this week.

During the coming week, the following events could serve as market movers:

 

  • U.S. Federal Reserve is expected to announce its monetary policy on Wednesday.

 

  • ECB Council to announce its interest rate decision on Tuesday.

Leaders Up on Volume: { BALKRISIND} (+12.55%),{500298} (++11.53%), {GAIL} (+5.86%),

Leaders Down on Volume: {NSE:MOIL} (-3.46%), {NOCIL} (-0.29%), {INFIBEAM} (-1.48%)

Current Outlook:

– Be cautious with any new purchases.

– Make a defensive game plan for your portfolio.

– Stay disciplined and exercise sound buy and sell rules.

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