Weekly Big Picture : Nifty Sustains 11,000, PSU Bank Leads Rally

Market Pulse

 Rally Attempt

Weekly Action

Nifty, +1.2%; Sensex, +1.1%; Nifty Midcap, +2.3%; Nifty Smallcap, +3.2%; and Model Portfolio,-1.5%.

Weekly Market Review 

The Nifty started the week with a 0.5% gain on Monday amid positive cues from the global market. This helped Nifty retake its 21-DMA and closed above 11,000. After a day off, the market continued the positive momentum with a gain of 0.3%, with the broader indices outperforming the benchmark. On Thursday, benchmark indices witnessed a sell-off and closed near the day’s low. On Friday, benchmark indices recouped the previous day’s losses, led by a rally in bank, IT, and energy stocks.

On the macro front, industrial production was up 4.3% in July, compared with 6.5% growth in the year-ago period, and was ahead of consensus. Manufacturing output rose 4.2%, mining output increased 4.9%, and electricity generation was up 4.8%. CPI rose 6bps to 3.2% y/y in August.

On the sectoral front, Nifty PSU Bank (+5.5%) was the top gainer, followed by Nifty Realty (+5.4%) and Metal (+3.7%).

Looking forward, we would like to see a follow-through day before shifting the market back to a Confirmed Uptrend. On the flip side, if Nifty breaches its correction low of 10,637, we will change the market status to a Downtrend.

WPI inflation data will be released on September 16.

Stocks in News

Lupin: The company received approval from Health Canada for a hypertension drug. It is available in 60 mg, 80 mg, 120 mg, and 160 mg strengths. The stock was up 0.7%.

Gravita India: The stock closed 6.6% higher today after the increase in the production capacity of lead recycling plant in Ghana to 12,000 MTPA from 6,000 MTPA.

Pi Industries: The stock gained 3.3% today after the acquisition of a 100% stake in Isagro Asia, which is engaged in contract manufacturing, local distribution, and exports of agrochemicals.

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

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