Weekly Big Picture : Nifty Realty Leads the Rally; Tata Power Bags Order from Defense Ministry

Market Pulse

Rally Attempt

Weekly Action

Benchmark indices closed positive for the fourth consecutive week. Nifty, +0.3%%.; Sensex, +0.4%; Nifty Midcap, -0.7%; Nifty Smallcap, +0.1%; and Model Portfolio, -0.5

Weekly Market Review

Benchmark indices closed positive in a holiday-truncated week. Nifty opened higher amid sustained FII inflows. Rupee went on to hit its highest level in the past seven months. It continued to perform well on Tuesday on the back of strong accumulation in banking stocks. However, it failed to sustain momentum with two consecutive weak sessions and closed below 11,500 level.

On the sectoral front, Nifty Realty (+6.1%) led the gains followed by gains in Nifty FMCG (+0.8%) and PSU Banks (+0.8%). Nifty Auto (-4.7%), Media (-3.8%), and Metal (-0.8%) were the underperformers.

The market status remained unchanged. After we moved the status to a Rally Attempt, the market failed to give a follow-through day. We will look for a legitimate follow-through day on the Nifty before we upgrade the market to a Confirmed Uptrend. However, we will downgrade the status to a Downtrend if the Nifty breaches 10,583.6 level.

In major news, Fitch Ratings cut India’s growth forecast to 6.8% for FY 2020 from the earlier estimates of 7% due to weaker-than-expected momentum in the economy.

Noteworthy events in the upcoming week:

●     March 29: Fiscal Deficit (Feb)

●     March 29: FX Reserve

Stocks in News

Alkem Laboratories: After a pre-approval inspection on Feb 6, the US FDA withheld a product approval filed from its manufacturing plant in the U.S. The stock was down 2.1%.

Tata Power: The Company’s SED division bagged a contract worth Rs 1,200 crore from the defense ministry for the supply of ship-borne 3D Air Surveillance Radars over the next 10 years. The stock is up 0.7%.

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

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