MARKET PULSE
Status: Confirmed Uptrend
Current Outlook:
- Market environment conducive for new purchases, but remain selective.
- Focus on fundamentally strong stocks breaking out of strong technical patterns.
- Stay disciplined and exercise sound buy and sell rules.
Highlights:
Two up days, two down days
Weekly Market Review
The benchmark indices put on a sluggish performance this truncated week. After posting solid gains last week, the benchmark indices ended the week in red owing to Friday’s steep fall. The key indices are trading at about 1% off their all-time highs.
The Nifty started the week past the 9,300 mark at 9,339.85 and lost 0.20% or 18.75 points by the end of the week. It traded in the wide range of 9,269.90-9,377.10 and closed at 9,285.30.
After opening the week at 30,021.49 points, the Sensex posted a similar loss of 0.20% or 59.60 points, as it ended the week at 29,858.80. It traded in the range of 29,804-30,176.55.
Despite a witnessing a steep slump on Friday, the key indices escaped the week without any additional distribution days, owing to lower trading volumes. The current distribution day count for the Nifty and the Sensex remains at 3.0 and 4.0, respectively. The market condition remains in a Confirmed Uptrend.
Talking about the broader indices, the Nifty midcap, after making a fresh all-time high this week, snapped from its seven-week winning streak to post a loss of 0.21%. The Nifty Smallcap index extended its rally by 0.19%.
The William O’Neil IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics, gained 1.04% this week.
On the sectoral front, the Nifty PSU Bank, Realty, and IT indices were the top three gainers with increments of 2.49%, 1.55%, and 1.43%, respectively, while Nifty Media, Metal, and Energy were the top three losers with -4.10%, -3.96, and -2.76%, respectively.
Domestic and global economic developments kept investors on the watch throughout the week. Mounting issues over NPAs in the banking segment came under the government’s scanner as it issued an ordinance to amend the Banking Regulation Act that will empower the RBI to go after defaulters. In another move by the government, Indian steel makers took a breath of relief after the Cabinet approved the National Steel Policy, under which priority will be given to Indian steelmakers in government tenders for infrastructure projects. As for news from the other end of the globe, the U.S. Federal Reserve kept the key interest rates unchanged. Further, it viewed the slowdown in economy as transitory and remained optimistic about the future, hinting at at least a couple more interest rate hikes this year.
Talking of the trading action this week, benchmark indices traded sluggishly in the first two trading sessions. Volatility prevailed on Tuesday and Wednesday, as key composites were range bound and closed flat with no major move. Investors awaited the U.S. Federal Reserve’s verdict on key interest rate.
However, the benchmark indices staged a strong rebound in Thursday’s session to end the day with significant gains. The government’s amendments to the Banking Regulation Act and approval of the National Steel Policy fostered market growth. The Nifty clocked an all-time high on closing basis in the session.
The cheers were however short lived, as bears rampaged markets in today’s session, giving away all the week’s gains. Key indices witnessed a sharp correction amid weak metal prices and profit booking.
The following events could serve as a market mover in the coming weeks:
- The April 2017 Consumer Price Index data: May 12, 2017
- Q4 FY 2017 earnings results for Blue Star, Future Retail, Hero Motocorp, Siemens, Asian Paints, Force Motors, HCL Tech, Dr Reddys Lab, Havells India, Titan, and Nestle, among others.
For more updates, Subscribe to MarketSmith India.
Disclaimer: William O’Neil India Investment Adviser division, is one of the divisions of William O’Neil India Private Limited, which is a company incorporated under the Companies Act 1956. William O’Neil India Investment Adviser division is a registered investment advisor with the Securities and Exchange Board of India and through its online product, MarketSmith Indiaintends to provide quality equity research material and information to its customers. The investments discussed or recommended through MarketSmith India may not be suitable for all investors and hence, you must rely on your own examination and judgement of the stock and company before making investment decisions. Data provided through MarketSmith India is for information purposes only and should not be construed as an offer or solicitation of an offer to buy or sell any securities. Information and discussions made available through MarketSmith India contain forward looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. William O’Neil India Investment Adviser division or its employees / directors or any of its affiliates are not responsible for any losses that may arise to any person who has made investments based on the contents of this document. Past performance never guarantees future results. Investment in equities are subject to market risks and despite the best efforts to provide market leading research, William O’Neil India would like to exhort its users to acknowledge and fully understand the risks involved which might include but not limited to loss of both principal and income. Data and content provided through MarketSmith India is to be consumed only by the intended recipient and must not be redistributed any further.
Registered office address: William O’Neil India, Technomark Building, A-4, NGEF Ancillary Industrial Estate, Graphite India Road, Mahadevapura, Whitefield, Bangalore 560048, Phone: + 91 80 67453802, Fax: + 91 80 6745381, Website: http://www.williamoneil.com/india/, For investor queries:queries@marketsmithindia.com; For grievances: grievances@marketsmithindia.com; For compliance officer:compliance@marketsmithindia.com, Corporate Identity Number: U74999KA2012FTC066881, Investment Adviser SEBI Regn. Nos: INA200005125 valid till 11 July 2021.