Market Pulse Confirmed Uptrend
Nifty, +3.2%; Sensex, +3.1%; Nifty Midcap, +4.2%; Nifty Smallcap, +3.1%; and Model Portfolio, +2.5%.
Weekly Market Review
Benchmark indices recovered sharply during the week with five consecutive up days. On Monday, Nifty found resistance at 100-DMA after retaking it for a brief period. However, continuing its strong movement the next day, Nifty retook its 100-DMA. The index traded in a narrow range on Wednesday and closed with moderate gains. On Thursday, after opening flat, the stock traded higher and closed near day’s high with solid gains. With a mixed opening on Friday, Nifty inched higher to register its gains for the sixth day in a row led by gains in Reliance Industries tracking the global lift in sentiment after the UK and the European Union struck a long-awaited Brexit deal. Reliance hit its 52-week high ahead of its earnings.
Broader markets performed in line with the market. Nifty Midcap and Smallcap were up 4.3% and 3.2%, respectively.
On the sectoral front, all the sectors closed positive with Nifty Auto (+7.8%) leading the tally followed by Nifty Realty (+6.3%) and Metal (+5.2%).
Looking ahead, we would like Nifty to hold its key moving averages with good participation from Midcap and Smallcap stocks. With Nifty in a Confirmed Uptrend, we recommend focusing on non-extended ideas trading above their respective moving averages with RS lines at or near new highs. On the flip side, if Nifty registers additional distribution days, it will be a subtle sign of weakness in the market.
Lupin gained 1.7% today after the company’s Nagpur facility received Establishment Inspection Report from the US DFA.
Indiabulls Housing Fin closed with a gain of 16.8% after the company offered pre-mature redemption of all NCDs maturing in November and December 2019 at par.
Larsen & Toubro gained 1.7% after the company announced to increase its stake in its subsidiary L&T Infrastructure Development Projects from Old Lane Mauritius III Ltd.