Weekly Big Picture – Nifty Closes Above 10,450 Amidst Consolidation

Teaser_MarketSmithIndia

MARKET PULSE:

Status: Confirmed Uptrend

Highlights:

Three up days, Two down days

Weekly Market Review:

Market participants had a tough week, as bulls and bears entangled into an oscillated battle, resulting in volatility over the week. Bulls ruled Monday’s session, but profit booking on Tuesday and Thursday trimmed the gains on the bourses.

The Nifty started the week at 10,353.85 and traded in the range of 10,323.95-10,461.70. The index closed the week at 10,452.50, up 1.25% from last week’s close. After opening at 33,260.10, the Sensex gained 1.59% this week to settle at 33,685.56. The index traded in the range of 33,164.28-33,733.71.

For the fifth consecutive week, broader market extended its gains with the Nifty Midcap and Smallcap indices rising 2.26 % and 4.12%, respectively.

The MarketSmith IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics, lost 0.40% this week.

From the sectoral point of view, Nifty Realty, PSU Bank, and Financial Services were the top gainers for the week as they advanced 8.44%, 4.07%, and 3.46%, respectively. However, Nifty IT, Metal, and FMCG dropped 0.21%, 0.17%, and 0.09%, respectively.

In other news, Nikkei India Services Purchase Manager’s Index (PMI) data was reported today during the market hours. The index rose to 51.7 in October, from September’s 50.7. However, the data is far below the historical average of 54.

On Wednesday, Nikkei Manufacturing PMI data came out at 50.3, for the month of October in comparison with 51.2 in September. The fall is attributed mainly due to negative sentiments of Goods and Service Tax (GST) roll out in the industry.

Along with PMI data, auto sales data was also announced on Wednesday. Top six passenger vehicle manufacturers, who control more than 90% of the domestic car market, posted a growth of just 4% in the month of October.

Next week, on Wednesday, the M3 money supply data is expected to be released. This could turn out to be a market mover in the next week.

This week, the Nifty lost one distribution day; thus, taking the distribution day count to two on the Nifty while the Sensex lost all its four distribution days this week taking the count to zero. The Indian Market remains in confirmed uptrend.

 

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.

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