Weekly Big Picture : Nifty Continues to Move Sideways; IRCON Bags Rs 635 Crore Order from Sri Lanka Railways

Market Pulse

Confirmed Uptrend

Weekly Action

Nifty, -0.4%; Sensex, -0.3%; Nifty Midcap, -1.5%; Nifty Smallcap, -1.5%; and Model Portfolio, +0.3%.

Weekly Market Review

In the holiday-shortened week, the Nifty moved sideways but also exhibited intraday volatility. Nifty lost 0.4% during the week whereas the Sensex was down 0.3%. Broader markets continued to be weak, with Nifty Midcap and Smallcap each losing 1.5%. The week opened with broadly weaker auto sales figures for April, and also a few major auto companies announced their quarterly earnings.

On the sectoral front, Nifty IT (-2.5%) and Pharma (-2.6%), which were top performers last week, lost the most. Nifty PSU banks (-2.3%) remained volatile, whereas Auto (-1.3%) continued its underperformance.

Since last few weeks, broader and individual sector indices are consistently underperforming Nifty 50. The top gainers in Nifty 50 in last one month include Cipla, Coal India, ONGC, JSW Steel, etc., which have been either volatile and/or failed to meet some important criteria of CANSLIM.

Market remains in a Confirmed Uptrend with a distribution day count of one. We might downgrade the status to an Uptrend Under Pressure if the count increases to 3–4.

Noteworthy events in the upcoming week:

●May 08: M3 money supply

●May 10: Industrial production (March), Manufacturing output (m/m, March), Cumulative industrial production (March)

Stocks in News

Godrej Consumer Products: The Company reported its March quarter results today during market hours. Revenue was down 3.1% whereas net profit grew 51.5% y/y because of one-off accounting gain due to deferred tax. Adjusted net profit, however, was up only 1% y/y. The stock reacted negatively and ended 2.0% lower.

Ircon International Limited, in an exchange filing today, reported that it has been awarded a contract worth Rs 635 crore by Sri Lanka Railways. The project involves upgradation of Maho-Omanthai Northern Railway line. The stock ended 2.4% higher.

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

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