Weekly Big Picture : Nifty Down 0.6% for the Week; Hero MotoCorp Shuts Production Line till August 18

 Market Pulse

Rally Attempt

Weekly Action

Nifty, -0.6%; Sensex, -0.6%; Nifty Midcap, -0.8%; Nifty Smallcap, -0.6%; and Model Portfolio, 0%. 

Weekly Market Review 

Benchmark indices closed negative in a holiday-truncated week. Monday was a holiday on account of Eid al-Adha. Nifty witnessed intense selling pressure on Tuesday and closed at the day’s low. However, it bounced back strongly on Wednesday on account of the news that the U.S delayed tariff on some of the Chinese goods until mid-December. Today, Nifty closed marginally higher after hitting day’s low in the morning session. It is currently trading 1.2% below its 200-DMA.

A couple of macro data such as CPI and WPI for the month of July came in during the week. While CPI fell to 3.15% after rising for six consecutive months, WPI declined for the third consecutive month to 1.08% on account of cheaper prices of food items, fuel, and manufactured products.

On the sectoral front, Nifty Energy (+3.1%) was the top gainer followed by Nifty Media (+1.4%), PSU Bank (+0.3%), and Metal (+0.2%). On the flip side, Nifty Pharma (-3.0%) was the top decliner followed by Nifty IT (-2.9%), Financial Services (-1.8%), and FMCG (-1.4%). In the broader market, Nifty Midcap (-0.8%) and Smallcap (-0.6%) are trading below their key moving averages.

Looking ahead, we would prefer to see a follow-through day before shifting the market back to a Confirmed Uptrend. On the flip side, if Nifty breaches its day 1 low of 10,814, the market will be moved back to a Downtrend.

Events in the upcoming week:

Aug 23: FX Reserve (USD)

Stocks in News 

Jindal Steel & Power: The Company plans to sell its coal assets in Botswana and Australia to Maatla Energy for a consideration of Rs 35,000 crore by the end of FY20. The Company asserted that they are monetizing its assets to pare its debt. The stock closed 0.1% lower.

Hero Motocorp: The Company announced that its manufacturing plants will remain shut until August 18 to adjust production in line with the current market demand. The stock closed 1.3% higher today.

What do you think? Please email us any questions or comments.

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