Weekly Big Picture – Uncertain Global Cues Weigh on Key Indices; Broader Markets Hold Ground

MarketSmith India _ Weekly Big Picture

MARKET PULSE

Status: Confirmed Uptrend

Highlights:

Two up days, three down days

Weekly Market Review

The Benchmark indices came under the grip of bears to post sharp losses this week. The key U.S. Federal reserve meeting and political uncertainties in Europe added to the woes of the Indian market.

The Nifty opened the week at 9,646.70 and lost 0.83% during the week. After trading in the narrow range of 9,560.80-9,654.15, it ended the week on 9,588.05.

The Sensex gave away 0.66% for the week to end at 31,056.40. It started the week at 31,225.43 and traded in the range of 31,017.18-31,260.77.

Despite three down days during the week, the benchmark indices did not record any new distribution days, thanks to lower trading volume. The Nifty and the Sensex continue to hold 2.0 and 4.0 distribution days, respectively. The market condition is in a Confirmed Uptrend.

In the broader market, the Nifty Midcap and Smallcap indices held on to its positive momentum with gains of 0.05% and 0.95%, respectively, for the week.

The MarketSmith India IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics, gained 1.25% in today’s trading session.

The sector chart put on a battered picture, with only three indices ending in green, while the rest recorded significant losses. The Nifty Realty, Energy, and Pharma indices gained 4.35%, 1.15%, and 0.19%, respectively. On the flip side, the Nifty IT, Metal, and Auto indices were at the bottom of the list, with losses of 2.42%, 2.22% and 1.61%, respectively.

Talking about the market action through the week, on Monday, the Indian benchmark indices started on a weak note with sharp losses, as investors did not seem impressed with the revised rates on 66 items by the GST Council and awaited the macroeconomic data to be released later on the day.

A divergent trend was witnessed on Tuesday as the Sensex, settled with tiny gains, while the Nifty registered minor losses. On Thursday, benchmark indices posted modest losses in line with the weakness in global stocks, following the Federal Reserve’s policy decision. The volatility continued into today’s session, as benchmark indices erased significant gains and ended flat.

There are no major events scheduled for the next week that could have an impact on markets. However, as we near the launch of GST, market volatility could prevail for the next few weeks.

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