Weekly Big Picture : PSU Bank Stocks Drag Market Down; Nifty Moved to Uptrend Under Pressure

Weekly Action

Nifty, -1.1%; Sensex, -0.9%; Nifty Midcap, -2.9%; Nifty Smallcap, -2.0%; and Model Portfolio, -0.4%.

Market Pulse Uptrend Under Pressure

Weekly Market Review

Indian market witnessed subdued performance during the week that was lined up with a series of macro data such as manufacturing PMI, services PMI, and the most important interest rate decision. While PMI data showed some improvement, maintaining the status quo on its repo rate by the RBI dragged the weekly performance of Nifty and Sensex that fared well over the last two weeks. Nifty breached its immediate support at 11,900. There was no respite for the broader market as Nifty Midcap and Smallcap fell 2.9% and 2.0%, respectively.

On the sectoral front, Nifty PSU Bank (-7.8%) was the worst performer this week led by State Bank Of India (-6.4%). Among others, Nifty Auto (-3.5%), Metal (-3.4%), Pharma (-2.8%), Energy (-2.6%), and Media (-2.6%) also followed the suit. On the flip side, Nifty IT (+1.9%) and Realty (+0.5%) were the gainers.

Today, Nifty breached its 21-DMA and added a distribution day, taking the total count to five. The elevated number of distribution days and Nifty breaching its key support level has led us to downgrade the market to an Uptrend Under Pressure. From here, we will change the status to a Downtrend, if 2–3 more distribution days are added or Nifty breaches its 50-DMA (11,734). Looking forward, we would like to see an improvement in market breadth and Nifty trading above its 21-DMA.

Important data to watch out next week:

December 12: CPI (Nov)

December 13: WPI (Nov)

Key News

Maruti Suzuki India (-1.8%) decided to recall 63,493 petrol-hybrid variants of Ciaz, Ertiga, and XL-6 models to rectify faults that may be potential safety defects.

Andhra Bank (-3.0%): The RBI imposed a penalty of Rs 25 lakh for failing to comply with RBI’s directions on KYC norms, anti-money laundering standards, and opening of current accounts.

Kec International (+0.7%): The company has secured new orders worth Rs 1,025 crore across its various businesses, which includes Rs 750 crore for transmission & distribution projects in India.

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

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