Weekly Big Picture : Energy, PSU Banks Lead and IT, Media Drag; US FDA Warns Jubilant Life

Market Pulse

Rally Attempt

Weekly Action

Benchmark indices closed positive for the third consecutive week. Nifty, +1.6%; Sensex, +1.7%; Nifty Midcap, +2.5%; Nifty Smallcap, +4.2%; Model Portfolio, +1.6%; and MSI Ind 47, +1.9%.

Weekly Market Review

The Indian market started the week on strong gains with the easing of geopolitical tensions. The holiday truncated week saw only one down day out of the four trading sessions. During the week, the Nifty reached its psychological level of 11,000 and is currently trading above its key moving averages. On the upside, the next hurdle is at 11,118.

With the three days of gains, the Nifty gained 1.6% during week. However, the Nifty Midcap and Smallcap gained 2.5% and 4.2%, respectively. FIIs bought stocks worth Rs 3,020.5 crore during the first three trading sessions of the week, whereas DIIs sold stocks worth of Rs 1,223 crore in the same period.

Barring Nifty Media (-3.3%) and IT (-2.8%), all other sectoral indices showed strength. PSU Bank (+3.7%) and Energy (+3.3%) gained the most during the week.

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. However, we will downgrade the status to a Downtrend if the Nifty breaches 10,583.6 level.

Noteworthy events in the upcoming week:

●   March 12: Industrial production, inflation (Feb)

● March 14: WPI inflation (Feb)