MARKET PULSE:
Status: Confirmed Uptrend
Highlights:
Three down days, Two up days
Weekly Market Review:
India’s benchmark indices got caught in bear grip, as weakness in the global market dented on domestic market. Bears gained the upper hand, as soon as the week began with heavy selling on Monday. However, the Indian market came back quite well in the final two session of the week.
The Nifty started the week at 10,322 and traded in the range of 10,094-10,343.60 to end at 10,283.60, down 0.37% from last week’s close; whereas the Sensex ended the week with a gain of 0.08% to settle at 33,342.80. The index was in the range of 32683.59-33520.82.
Today, the Nifty and the Sensex, surged 0.67% and 0.71% respectively, as Moody’s upgraded the India’s local and foreign currency issuer ratings to Baa2 from Baa3 and changed the outlook on the rating to stable from positive.
Mirroring the benchmark, broader indices ended the week mixed; as the Nifty Midcap posted a weekly gain of 0.34%, whereas the Smallcap indices lost 1.51%.
The MarketSmith IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics, outperformed the benchmark indices and gained 1.56% this week.
Moving to the sectoral front, the Nifty Realty gained a huge momentum as indices posted a weekly gain of 2.20%. Decent gains, from the other sectors, include Nifty PSU Bank (+1.68%) and Private Bank (+0.87%). On the flip side, Nifty Metal (-2.53%), Pharma (-1.61%), and Media (-1.56%) lost the most.
This week, the Nifty gained one distribution day and lost its previous distribution day to remain at three, whereas no change was observed on the Sensex distribution count at two. Since, both the indices are comfortably above their 50-DMA and 200-DMA with less number of distribution days. The Indian market status remains at Confirmed Uptrend.
In the coming week, investors should keep an eye on M3 Money supply data, which is expected to be out on November 22, 2017.
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.
To Read Detailed Reports including Stock Recommendations, Idea Lists, Evaluate Stocks etc. Subscribe to MarketSmith India.