Weekly Big Picture : Nifty Makes a New All-Time High; IT and Metal Stocks Gain during the Week

Weekly Action

Nifty, +1.5%; Sensex, +1.6%; Nifty Midcap, -0.2%; Nifty Smallcap, +0.7%; and Model Portfolio, -0.2%.

Market Pulse Confirmed Uptrend

Weekly Market Review

Indian markets made new all-time highs on four occasions during the week. On Tuesday, the market was upgraded to a Confirmed Uptrend as Nifty retook its previous high of 12,158. Two distribution days expired during the week, indicating a positive sign for the market. Leaders like ICICI Bank, RIL, Kotak Bank, and HDFC Bank are at all-time highs.

On the sectoral front, barring Nifty FMCG (-0.2%), all other sectors closed in the green. Nifty IT (+4.2%) and Metal (+3.1%) were the top gainers. Among others, Nifty Realty, Media, Banks, and Financials gained 1.0–1.5%.

FII/FPIs were net buyers of equity on all the five trading sessions of the week. Cumulatively, they have bought stocks worth around Rs 5,000 crore. On the other hand, DIIs were net sellers on all the sessions, as they sold stocks worth around Rs 4,000 crore.

Looking ahead, we remain positive on the general market after the market status was changed to a Confirmed Uptrend recently. It’s a good time to reiterate the O’Neil strategy of buying high and selling higher. Do not hesitate to selectively increase risk in quality ideas emerging from early-stage bases and trading at all-time highs. Also, stocks that had pulled back in price on low volume when the market was consolidating, have now rebounded from their moving averages when the market started making higher highs, can do well.

Key News

Cadila Healthcare gets zero observations (483) from the U.S. FDA for its manufacturing plant in Ahmedabad.

Mahindra & Mahindra’s board approved the transition of Anand Mahindra to non-executive chairman role, and Pawan Kumar Goenka as MD and CEO from April 1.

Lupin received approval from the U.S. FDA for its Betamethasone Dipropionate Ointment USP (Augmented), 0.05%, and to market a generic equivalent of Diprolene Ointment, 0.05%, of Merck Sharp and Dohme Corp.

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