MARKET PULSE:
Status: Confirmed Uptrend
Highlights:
Four up and one down days
Weekly Market Review:
Bulls get better off bears for the seventh consecutive week, as both the Nifty and the Sensex pocketed a weekly gain of 2% and 2.66%, respectively. The benchmark indices started the week on a strong note and kept the momentum throughout the week barring a profit booking Tuesday’s session. The Nifty and the Sensex eclipsed their milestone level of 10,800 and 35,000 to reach record levels.
However, buying interest was not mirrored in broader market. The Nifty Midcap and Small cap indices observed a strong distribution as they posted weekly losses of 1.78% and 2.83%, respectively.
Talking about the sector-specific performance, private banking and financial stocks gained the most on the account of media reports suggesting 100% FDI approval from the government. However, not all stocks participated in this week rally as the realty, metal, and energy stocks dropped 5.32%, 3.73%, and 2.15%, respectively.
Leading stocks had a tough week, as MarketSmith India IND 47 our proprietary list of top 47 stocks which has strong technical and fundamental characteristics dropped 4.81% weekly gains.
During this week, the Nifty had shed two and added one distribution day whereas the Sensex shed one and added one distribution day leading to a distribution count of two and one respectively. Since both the key indices are trading constructively above their moving averages of 50-DMA and 200-DMA and reaching new milestones, we are comfortable in keeping the Indian market status at a Confirmed Uptrend.
On the economic front, Union Finance Minister Arun Jaitley chaired the GST council meeting yesterday. The apex decision body on Goods and Services Tax (GST) revised rates of 29 items and 53 categories of services. The GST council also discussed about the idea of making the GST return filing process simpler in order to ease the burden on small business. However, there was no conclusion made related to crude oil, natural gas, petrol, diesel, and real estate to bring them in GST preview. Finance minister may consider them in the next meeting.
During the coming week, the Indian stock market will remain closed on January 26, 2018 (Friday) on the account of Republic Day. Following events are lined up in the coming week, which could be market movers:
- Q3 FY 2017 results for Asian Paints, Avenue Supermarts, Pidilite Industries, L&T Technology Services, and Jindal Steel, among others.
Current Outlook:
– Market environment conducive for new purchases, but remain selective.
– Focus on fundamentally strong stocks breaking out of strong technical patterns.
– Stay disciplined and exercise sound buy and sell rules.
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