Weekly Big Picture : Nifty Slides 3.7% this Week; SBI Asset Quality Improves

Market Pulse

Uptrend Under Pressure

Weekly Action

Nifty, -3.7%; Sensex, -3.9%; Nifty Midcap, -2.5%; Nifty Smallcap, -3.1%; and Model Portfolio, -2.9%.

Weekly Market Review

Benchmark indices declined heavily during the week as the trade talks between the U.S and China intensified. The Nifty and the Sensex lost 3.7% and 3.9%, respectively. Today’s action qualifies as a distribution day.

On the sectoral front, all the sectors showed weakness. Nifty Metal (-6.8%) and Energy (-6.5%) declined the most. With a loss of 0.9%, Nifty IT showed some resilience during the week.

During the week, we downgraded the market status to an Uptrend Under Pressure as the Nifty breached its 50-DMA and rising distribution. We’ll further downgrade the market if the distribution day count increases to more than 5-6.

Noteworthy events in the upcoming week:

●      May 13: CPI Inflation (April)

●      May 14: WPI Inflation (April)

Stocks in News

State Bank Of India: The Company reported its March quarter results today. NII rose 14.9% y/y, PAT declined 78% sequentially to Rs 838.4 crore. Asset quality improved, PCR at 78.73%, and NNPA at 3.01%. The stock ended 2.9% higher today.

Jet Airways (India): Today is the deadline to submit bids. SBI Caps, which is overseeing the bidding process, had shortlisted four suitors. The stock ended 2.9% higher today.

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

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