MARKET PULSE:
Status: Uptrend Under Pressure
Highlights:
One up and four down days
Weekly Market Review:
Bears continue to control the Indian market as the key indices observed some heavy sell off for the second consecutive week. The global volatility has kept the investors subdued as they resort to a conservative approach to investing.
The Nifty plunged 2.84% while the Sensex dropped 3.03% amidst heavy fall in the world’s major indices.
Talking about the broader indices, they displayed some recovery after undergoing a bloodbath over the last few weeks. The Nifty Midcap and Smallcap stocks gained 0.57% and 2.80%, respectively.
Four sectors had a bull run this week while the rest of the sectors were driven by bears. The top-performing sectors were Nifty Realty (+2.24%), Pharma (+1.99%), and Metal (+0.96%). On the flip side, Nifty Financial (-3.86%), IT (-3.78%), and Bank (-3.73%) were the top three losers.
MarketSmith India’s IND 47 index, our proprietary list of top 47 stocks, gained 3.56% this week.
This week, key indices have seen a major decline and are about 6.4% off their all-time highs. On Tuesday, the key indices breached 50-DMA mark, thus we changed the market status to ‘Uptrend Under Pressure’on Tuesday. The total distribution day count stands at three on both the index.
Investors should proceed with caution due to weakness in the general market. The Nifty Midcap and Smallcap indices have corrected 9% and 12.16%, respectively, from their all-time highs.
During the coming week, the following events could serve as market movers:
Manufacturing Output, Industrial Production, CPI: February 12, 2018
WPI Food, Manufacturing Inflation: February 14, 2018
Current Outlook:
– Be cautious with any new purchases.
– Form a defensive game plan for your portfolio.
– Stay disciplined and exercise sound sell rules.
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