Weekly Big Picture – Market Inches Higher Amid Volatility



Status: Uptrend Under Pressure


Three up days, one down day

Weekly Market Review

The benchmark Indices started the four day trading week at a loss of 0.84%. Frontline Indices traded in a range bound fashion with the Nifty managing to hold the 9,850 mark. Markets were volatile for most of the days in this week. However, as the week progressed, both the Sensex and the Nifty managed to accumulate and take the overall gains for the week to 0.23% and 0.20%, respectively.

The Nifty started the week at 9,864.25 and traded in the range of 9,740.10-9,884.35. The index finally closed at 9,857.05.After opening the week at 31,609.93, the Sensex added 71 points this week to close at 31,596.06. Its trading range was observed in between 31,220.53 to 31,678.19.

This week the Sensex added one distribution day on Monday and dropped one on Wednesday due to ageing, therefore, keeping the total count to 7. The Nifty also dropped one distribution day on Wednesday due to ageing thus taking down the count to 5.

Broader markets failed to move in line with the frontline indices this week, the Nifty MidCap and Smallcap lost 0.45% and 0.06%, respectively.

The MarketSmith IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics, gained 1.26% in today’s trading session.

Barring five sectors all the other sectors performed well this week, the top three outperforming sectors were Nifty Pharma, Financial, and the Pvt Bank gaining 3.04%, 0.99%, and 0.97% respectively. The top three losers were Nifty Auto, FMCG  and Media losing 0.98%, 0.64% and 0.63% respectively.

After Vishal Sikka’s exit, Infosys announced its buyback plan of 11.3 crore shares amounting to worth INR 13,000 crore. The Indian Meteorological Department (IMD) in its weekly press release stated that almost three fourth of the country has received deficit rainfall in the first half of the monsoon, however, they are optimistic for the second half of the rainy reason.

RBI’s deputy governor, Viral Acharya, came down heavily on large corporate non-performing assets today and announced that banks must file defaulted loan accounts for bankruptcy if they cannot rectify this issue within three months. The Banking sector is struggling with NPA’s worth more than INR 8 lakh crore, accounting for nearly 10% of the total loans in the industry.

The Bhopal-based road developer Dilip Buildcon informed exchange that it has signed a term sheet for disinvestment by way of sale, transfer or disposal of 24 subsidiaries of the company with Chhatwal Group Trust. The shares of Dilip Buildcon surged 6% intraday today.

Tomorrow, the exchanges will remain closed for trading on the account of Ganesh Chaturthi. Major events which could move the market during the next week are:

-Infrastructure Output data and GDP growth rate data to be released on August 31, 2017.

-August F&O Expiry on August 31, 2017.

Current Outlook:

-Be cautious with any new purchases

-Form a defensive game plan for your portfolio

-Stay disciplined and exercise sound sell rules.

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