Weekly Big Picture – PSU Bank and Media Stocks Uplift Market; Nifty Reclaims 200-DMA

Market Pulse

Uptrend Under Pressure

Weekly Action

Benchmark indices posted solid weekly gains. Nifty, +1.0%; Sensex, +0.9%; Nifty Midcap, +0.5%; Nifty Smallcap, +0.3%; Model Portfolio, +1.8%; and MSI Ind 47, +0.1%.

Weekly Market Review

The Nifty continued its bear run on Monday for the third straight session and closed below the 10,700 level. With that, we changed the market status to an Uptrend Under Pressure.

However, after a day off on Tuesday, market bulls made a strong recovery on Wednesday buoyed by a strong performance in the broader market. While media and financial services names gained momentum, IT and pharmaceutical stocks lost the most.

Benchmark indices continued their uptrend on Thursday for the second straight session, led by gains in Infosys and Reliance Industries. Taking cues from weaker crude and strengthening rupee, Nifty continued its positive momentum on Friday and closed above 10,850 level. HDFC Bank (+0.9%), Housing Development Fin. (+1.6%), and ICICI Bank (+1.4%) were the key contributors to the Nifty.

The market remains in an Uptrend Under Pressure. Distribution remains at three on the Nifty. We will change the status to a Downtrend if 2-3 more distribution days are added. On the other hand, the market will be moved to a Confirmed Uptrend if the Nifty retakes the 10,942 level (its high during the recent rally).

As the market is in an Uptrend Under Pressure, investors should proceed ahead with caution. Unless a stock shows exceptional fundamental and technical strength, no new addition to the portfolio is advised.

In the coming week, the following events could move the market:

●       December 31: Federal fiscal deficit (Nov)

●        January 2: Manufacturing PMI (Dec)

●        January 4: Services PMI (Dec)

Stocks in News

PVR: The Company plans to raise about Rs 750 crore through the issue of securities to qualified institutional buyers, which will be used for funding capex needs, potential acquisitions, and reducing debt. The stock was up 0.1% today.

Tata Motors: The Company won electric bus orders from six states for supplying 190 electric buses of two different sizes and is keen to grab more orders from other states and municipal corporations. The stock gained 1.6%.

Kansai Nerolac Paints: The Company entered into a share purchase agreement to acquire 100% stake in Prema Construction for a consideration of Rs 29 crore. The stock was up 0.4% today.

Action in Leading Stocks

Leaders Up on Volume: Gail (India) (+3.3%), Titan Company (+2.5%), PVR (+1.3%)

Leaders Down on Volume: Srf (-6.9%), Capri Global Capital (-2.2%), Dabur India (-1.0%)

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