Status: Confirmed Uptrend
Three up days, two down days
Weekly Market Review
The benchmark indices started the week on a positive note, making fresh highs. However, the indices came under pressure following uncertainties surrounding various domestic and global events.
The RBI’s bi-monthly monetary policy meeting impacted market movement during the week. As widely expected, the RBI retained repo rate at 6.25%, giving more room to access the economy, post GST release. Further, the central bank reduced statutory liquidity ratio by 50 basis points to 20%.
In line with its global peers, the Indian markets witnessed a volatile week owing to major global events. The rift between Qatar and other Middle Eastern countries, hung Parliament post the U.K. general elections, ECB’s monetary policy meeting, and Comey’s appearance at the U.S. senate restricted market rally in the week.
The Nifty started the week past the 9,600 mark at 9,656.30 and gained 0.15% by the end of the week. It traded in the range of 9,608.15-9,709.30 and closed at 9,668.25.
After opening the week at 31,274.74 points, the Sensex posted a loss of 0.04%, ending the week at 31,262.06. It traded in the wide range of 31,087.28-31,430.32.
Thanks to a sharp recovery in Friday’s session, key indices ended the week on a flat note. The Sensex dropped a distribution day on Monday but added one back in the next trading session. The distribution day count for the Sensex and the Nifty is now at 4.0 and 2.0, respectively. The Indian markets continue to trade in a Confirmed Uptrend.
The Nifty Midcap and Smallcap both gained 1.26% and 0.77%, respectively.
The MarketSmith IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics, gained 2% this week.
On the sectoral front, the Nifty Pharma, Metal, and Realty indices were the top three gainers, with increments of 2.73%, 2.54%, and 2.22%, respectively, while Nifty FMCG, IT, and Energy were the top three losers, with -1.74%, -1.57%, and -0.59%, respectively.
Talking of the market action through the week, benchmark indices started off with a solid gain on Monday. Both the Sensex and the Nifty recorded fresh closing highs, assisted by rally in realty and financial stocks. However, the cheers were short lived, as bears took control over the markets in anticipation of RBI’s two-day monetary policy meeting. Tuesday’s losses came on high volumes, adding a distribution day to both the indices.
In Wednesday’s trading session, benchmark indices were range bound and traded flat for most of the session until RBI announced to keep the interest rates unchanged. Towards the end of the session, the market picked up pace and closed with smart gains.
The outcome of the RBI’s bi-monthly policy meeting was overshadowed by major global events, which kept investors cautious in the remaining two trading sessions. General elections in the U.K., European Central Bank’s policy meeting, and James Comey’s testimony played catalyst to markets in Thursday’s session. In a sudden turn of events, markets recouped most of the losses on Friday boosted by the auto and banking stocks.
The following events could serve as market movers in the coming week:
– The May 2017 Consumer Price Index data: June 12, 2017
– The May 2017 WPI Inflation: June 14, 2017
To Read Detailed Reports including Stock Recommendations, Idea Lists, Evaluate Stocks etc. 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:email@example.com; For grievances: firstname.lastname@example.org; For compliance officer:email@example.com, Corporate Identity Number: U74999KA2012FTC066881, Investment Adviser SEBI Regn. Nos: INA200005125 valid till 11 July 2021.