Weekly Big Picture : Nifty Makes a New All-Time High; Realty Stocks Outperform During the Week

Weekly Action

Nifty, +0.3%; Sensex, +0.3%; Nifty Midcap, +0.6%; Nifty Smallcap, +1.6%; and Model Portfolio, +2.1%.

Market Pulse Confirmed Uptrend

Weekly Market Review

It was a highly volatile week of trading for the Indian and global markets due to geopolitical tensions. The week started with a huge selling pressure as Nifty gave up its 50-DMA for the first time since September 20. Thus, we changed the market status to an Uptrend Under Pressure. After ease of geopolitical tensions, Nifty retook its 50-DMA and ended the week on a positive note, with a weekly gain of 0.3%. Broader market indices, Nifty Midcap (+0.6%) and Smallcap (+1.6%) have outperformed the major index.

On the sectoral front, Nifty Realty (+3.7%) and FMCG (+0.9%) were major advancers. Whereas, Nifty PSU Bank (-2.5%) and Pharma (-0.7%) were major decliners.

Today, the Indian market has been moved to a Confirmed Uptrend. Today, Nifty broke out from 12,294 (high during the recent Confirmed Uptrend) and made a new all-time high of 12,310.7.

Additional follow-through day over the next few days will strengthen the current uptrend. We will look for leadership among some good stocks to push the market up and expect multiple high-quality stocks to breakout from their pivot points and make higher highs. We recommend investors stay selective and buy only high-quality growth ideas exhibiting strong relative strength compared with the market.

Look for quality ideas emerging from early-stage bases with high relative strength. Also, stocks that had pulled back in price on low volume when the market was consolidating, and have now rebound from their moving averages when the market started making higher highs, can do well. It is important that investors don’t play all their cards at once. We would suggest adopting an investment approach where you begin with a small allocation and increase it as and when the market advances further.

Key News

December Domestic Passenger Vehicle Sales:

Domestic passenger vehicle sales were down 1.24% at 2.35 lakh units.

Domestic passenger car sales came in at 1.42 lakh units, down 8.4% y/y.

Motorcycle sales at 6.97 lakh units, down 12% y/y.

Knr Constructions will sell its entire 100% equity stake in a toll road BOT asset to Singapore based Cube Highways for an enterprise value of Rs 529 crore, excluding claims receivable from NHAI and other government instrumentalities. The stock gained 9.3%.

Gtpl Hathway reported its December quarter results. Its revenue surged 115% to Rs 687 crore, PAT rose 77% to Rs 32 crore. The stock advanced 1.7%.

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

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