Market Pulse
Weekly Action
Two down and two up days: Nifty, +0.3%; Sensex, +0.4%; Nifty Midcap, +1.0%; Nifty Smallcap, +1.3%; Model Portfolio, +1.7%; and MSI Ind 47, +0.4%.
Weekly Market Review
After having a blockbuster last week with a changed outlook, India’s frontline indices traded in a narrow range on Monday with the majority of sectoral indices closing in the red. The weak performance was on account of dismal performance from the Nifty Pharma, which declined 0.9% led by results below expectations from Cipla and Glaxosmithkline Pharms..
Continuing its sluggish performance, benchmark indices on Tuesday erased most of its morning gains to end the day on a flat note, amid selling in Banking and FMCG stocks. However, the Nifty managed to close above its 10,500 level. Cipla extended its Monday’s 7% decline to emerge as the top loser, due to its weak Q2 results and a sluggish outlook for H2 FY 2019.
However, benchmark indices reserved their best for the most awaited Muhurat trade session and clocked its best ever gains in 10 years on Wednesday led by a rise in automobile and IT stocks. Both the Nifty and the Sensex rose 0.7% each.
After having a day off on Thursday, benchmark indices ended slightly lower on Friday as IT, PSU bank, and Metal stocks trimmed gains. Infosys (-2.4%), Hindalco Industries (-2.2%), Dr Reddys Laboratories (-2.2%), and Bharti Airtel (-2.1%) emerged as top losers.
Most sugar stocks surged higher amid reports that India would resume exporting raw sugar to China as it eyes overseas markets. Balrampur Chini Mills (+3.3%), Dcm Shriram (+1.8%), Dalmia Bht.Sug.& Inds. (+5.2%) emerged as key movers.
With respect to market direction, the Indian market remains in a Confirmed Uptrend. More follow-through days in the coming session will further strengthen the current uptrend. We will look for leadership among some good stocks to push the markets up and expect multiple high-quality stocks to breakout from their pivot points and reach new highs. Since these are the early days of a new rally, 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 we advance further, with consideration to market direction.
On the sectoral front, barring Nifty FMCG (-0.4%) and Metal (-0.2%) all the sectoral indices closed in the green. Nifty Realty (+2.2%) emerged as the top gainer followed by Nifty IT (+1.1%) and Auto (+1.1%).
In the coming week, the following events could move the market:
● CPI for the month of October: November 12
● Aurobindo Pharma Q2 Earnings: November 12
● Britannia Q2 Earnings: November 12
● Eicher Motor Q2 Earnings: November 12
● Apollo Tyres Q2 Earnings: November 13
● Tata Steel Q2 Earnings: November 13
● WPI for October: November 14
● Trade Balance: November 15
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