Weekly Big Picture : Nifty Gains 0.7% this Week; Nifty IT Gains, Auto and Pharma Stocks Decline

Market Pulse

Confirmed Uptrend

Weekly Action

Nifty, 0.7%; Sensex, 0.7%; Nifty Midcap, 1.5%; Nifty Smallcap, 0%; and Model Portfolio, 1%.

Weekly Market Review

On Monday, the Indian market was moved to a Confirmed Uptrend as Nifty retook the 11,856 level (its high when it was last in a Confirmed Uptrend). Today, the Nifty added a distribution day as it was down 0.2% on higher volume as compared with yesterday’s session. But, the distribution day count remains at three with one expiring today.

After advancing 3.8% last week, the Nifty started this week on a positive note. But, it could not continue the momentum in the later part of the week as most global indices were weak. On Wednesday, we downgraded the U.S. market to a Downtrend, as the S&P 500 undercut the May 13 low of 2,801.

On sectoral front, Nifty IT (+3.8%) gains after four weeks of poor performance. Nifty Energy (+1.8%), Financials (+1.3%), Realty (+1.4%), and Pvt Banks (+0.7%) closed in the green. The Nifty Auto (-3.4%), PSU Bank (-2.38%), and Pharma (-1.8) were the top losers.

The advance-decline ratio was in favor of decliners. Of the 2,097 stocks traded on the NSE, 629 advanced, 1,132 declined, and 336 remained unchanged.

Noteworthy events in the upcoming week:

  • June 6: Interest rate decision by RBI
  • Auto sales data

Stocks in News

Dr Reddys Laboratories: The Company received the EIR (Establishment Inspection Report) from USFDA for its Miryalaguda plant. Today, the stock was up ~1%. On a weekly basis, Nifty Pharma was down 1.8%, but Dr Reddy gained marginally and is able to hold its 200-DMA.

Tata Steel: The National Company Law Tribunal approved Tata Steel’s resolution plan to acquire Bhushan Energy Ltd. for around Rs 800 crore.

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