Market Pulse
Uptrend Under Pressure
Weekly Action
Benchmark indices posted weekly gains. Nifty, +0.6%; Sensex, +0.9%; Nifty Midcap, +0.1%; Nifty Smallcap, +0.2%; Model Portfolio, +0.3%; and MSI Ind 47, 0.1%.
Weekly Market Review
The Nifty started the week with three consecutive gain days but ended with two red days. The index added a distribution day today. The Nifty had retaken its 200-DMA on Tuesday but was unable to sustain it. Today, the Nifty ended below its 200-DMA.
Nifty FMCG (+1.9%) and Pharma (+1.3%) were the top gainers, while, Nifty Metal (-1%) and Media (-0.9%) were the top losers.
The market remains in an Uptrend Under Pressure. The Nifty had a distribution day as it fell more than 0.2% higher than yesterday’s volume, taking the total count to four. We will change the status to a Downtrend if 1-2 more distribution days are added. On the other hand, the market will be moved to a Confirmed Uptrend if the Nifty retakes the 10,942 level (its high during the recent rally).
As the market is in an Uptrend Under Pressure, investors should proceed ahead with caution. Unless a stock shows exceptional fundamental and technical strength, no new addition to the portfolio is advised.
In the coming week, the following events could move the market:
● January 14: WPI & CPI for December
Stocks in News
Tata Motors: The Company’s group global sales for December declined 13.9% y/y. The stock was down 2.9% today.
Gail (India): UBS downgraded the recommendation to sell from buy on Gail India. The stock lost 1.6% today.
Karnataka Bank: NII grew 8.1% to Rs 488 crore y/y; PAT increased 60.6% to Rs 140 crore beating estimates; Provisions at Rs 209 crore, up 6.4% y/y. The stock was up 0.7% today.
Infosys: The Company announced its Q3 results, after market. Net Sales grew 20.3% y/y to Rs 21,400 crore; 29.6% drop in consolidated net profit missing estimates.
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