Weekly Big Picture : Media and IT Stocks Lead; Tata Motors Fell 17% on Lowering Margin Guidance

Market Pulse

Rally Attempt

Weekly Action

Benchmark indices closed higher. Nifty, +0.5%; Sensex, +0.2%; Nifty Midcap, -2.3%; Nifty Smallcap, -3.4%; Model Portfolio, +1.7%; and MSI Ind 47, +0.6%.

Weekly Market Review

The benchmark indices started the week on a flat-to-positive basis, thanks to a last hour recovery supported by gains in Kotak Mahindra Bank, Reliance Industries, and Housing Development Fin.. The market continues its rangebound session on Tuesday and closed 0.2% higher. However, the broader market exhibited a weakness for the second straight day.

On Wednesday, the Nifty bounced back strongly from rangebound sessions and was able to clear near-term resistance. It closed with a gain of 1.2%, well supported by all the sectoral indices. However, market participants turned cautious on Thursday (as it was the day of the Reserve Bank of India’s MPC meeting) and closed the session on a flat note.

An intense sell-off was seen in the market on Friday, and almost all sectors closed in the red. Nifty Auto (-3.6%) was the worst performer, led by Tata Motors (-17.6%). Among the others, Nifty Metal (-3.4%), Media (-1.9%), and FMCG (-1.6%) closed lower. Nifty Realty (+0.8%) was the lone gainer in the market.

For the week, Nifty Media (+5.6%) and IT (+1.9%) were the top gainers. On the other side, Nifty Metal (-2.7%) and Realty (-2.1%) were the top losers.

The market status remained unchanged. We will look for a legitimate follow-through day for the Nifty, after which we will upgrade the market to a Confirmed Uptrend.

Next week, the following events could move the market:

●      February 12: CPI (Jan)

●      February 12: Industrial Production (Dec)

●      February 14: WPI (Jan)

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