Table of Contents
MARKET PULSE
Status:
Confirmed Uptrend
Highlights:
Five up days
Weekly Market Review:
Market sentiment remained buoyant, as India’s major indices brought home solid gains for the third week in a row.
The Indian stock market achieved a rare feat of pocketing gains in each of the trading sessions of the week, only the second time in the last one year.
Key indices got off to a positive start on Monday brushing aside weak global cues, as market participants remained optimistic ahead of the earnings season.
It was a similar story in the next four sessions, as benchmark indices followed up with small gains on each trading day.
Both the Nifty and the Sensex extended their winning streak to seven sessions on Friday. Rising crude prices did not have a bearing on market sentiment, as both the Sensex and the Nifty ended with weekly gains of 1.7% and 1.4%, respectively.
In the broader market, investor interest was a bit subdued following last week’s strong rally. The broader indices underperformed their major counterparts, as Nifty Midcap advanced 0.8%, while Nifty Smallcap ended flat.
On the sectoral front, most indices ended in green, with Nifty IT (5.2%), Metal (3.4%) and Private Bank (2.2%) topping the table.
MarketSmith India’s IND 47 index, our proprietary list of top 47 stocks in chart and fundamental characteristics, gained 2% this week, outperforming the overall market once again.
Going by the key economic data released during the week, the world’s fastest-growing economy did not disappoint market bulls. With industrial production beating expectations and inflation cooling off, market optimists could not have asked for anything better. IIP grew 7.1% y/y in February while CPI inflation rate slowed to 4.28% in March from 4.44% in February, due to lower food prices.
Talking about market direction, the market status remains unchanged at Confirmed Uptrend. Frontline indices displayed strength by reclaiming their key resistance level of 50-DMA. The action in leading stocks was encouraging once again, with some quality names breaking out of sound chart patterns to enter into new high ground.
In the coming week, following events could serve as market movers:
- Wholesale Price Index for March 2018: April 16, 2018
- Q4 FY 2018 Financial Results for {INDUSINDBK}, {TCS} and {HDFCBANK}
Current Outlook:
– Market environment conducive for 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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