Weekly Big Picture – Key Indices Maintain Bullish Stance In Expiry Week


Confirmed Uptrend


Four up and one down days

Weekly Market Review:

The bulls were in charge again on D-street, as both major indices accumulated gains for the fifth consecutive week.

The expiry week began on a strong footing, as Nifty and Sensex started off on a positive note. IT, Realty and Pharma stocks outperformed on Monday. The rally in IT stocks was so strong it helped India in getting its $100 billion company- Tata Consultancy Svs. after a decade. Reliance Industries had earlier achieved this milestone in 2008.

Tuesday’s action started on a gloomy note for the bourses, but benchmark indices flexed up their muscles in the final hours to record modest gains.

However, concerns of rising 10-year U.S. Treasury yield to a four-year high of 3% played spoilsport on WednesdayNifty gave back 0.4% whereas Sensex fell 0.3%.

The rising concern faded with frontline indices bouncing back in Thursday’s session. Solid results from Yes Bank boosted the investors’ confidence.

Benchmark indices extended their rally in Friday’s session on the back of strong global cues. Asian and Europe stocks rose higher after the U.S. stock market gained due to a strong rebound in technology stocks.

In the end, Nifty and Sensex made a weekly gain of 1.2% and 1.6%, respectively.

The action in the broader market were mixed, as Nifty Midcap picked up 1% whereas Smallcap lost 0.5%.

Sectoral indices were a mixed bag during the week. Nifty IT (+4.9%), Metal (+4.5%) and FMCG (+4.2%) were in the list of top gainers. On the flip side, Nifty PSU Bank and Nifty Energy were the top losers that tumbled 4.8% and 1.2%, respectively.

MarketSmith India’s IND 47 index, our proprietary list of top 47 stocks in chart and fundamental characteristics, continue to shine as it gained 2.7% this week.

Talking about market direction, the market status remains unchanged at a Confirmed Uptrend.

Frontline indices continue to add more space above their key resistance of 50 and 200-DMA with no distribution day. The action in leading stocks remains encouraging. We continue to see good quality stocks breaking out to new highs.

During the coming week, the Indian stock market will remain closed on May 1, 2018 (Tuesday) on account of Maharashtra Day. Following events lined up for the coming week, could turn out to be market movers:

-Q4 FY 2018 financial results for Kotak Mahindra BankHousing Development Fin.CeatInterglobe Aviation and Avenue Supermarts

-Monthly Automobile Sales Data for April 2018: May 1, 2018

-Nikkei Manufacturing PMI Data: May 2,2018

-Nikkei Services PMI Data: May 4, 2018.

Current Outlook:

– Market environment conducive for purchases, but remain selective.

– Focus on fundamentally strong stocks breaking out of strong technical patterns.

– Stay disciplined and exercise sound buy and sell rules.

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