Nifty, +5.9%; Sensex, +5.8%; Nifty Midcap, +6.7%; Nifty Smallcap, +10.5%; Model Portfolio, +0.8%.
Market Pulse : Confirmed Uptrend
Weekly Market Review
Nifty continued its positive momentum and closed nearly 6% higher for the week. It is inching closer to its 100-DMA (10,323.10). All the sectoral indices edged higher. Nifty PSU Bank (+22.7%) led the rally followed by Media (+18.0%) and Realty (+12.2%). Both its 21- and 50-DMA are starting to trend higher, indicating a constructive sign for a major rally. In addition, Nifty Midcap (+6.7%) and Smallcap (+10.5%), advanced further.
We remain in a Confirmed Uptrend and are open to increasing risk selectively in quality names coming out of proper bases. If we see Nifty add more distribution days, breaching key moving averages, and begin to see leaders falter at support, we will likely shift the market status to an Uptrend Under Pressure. The beauty of our CAN SLIM method is that we need not "expect," "hope," or "wish for" with respect to market action. We will take what the market gives us and continue to monitor unfolding conditions.
We do our best to narrow our focus on stocks that meet our leadership profile. This indicates they are showing strong earnings and sales, and also have an interesting potential catalyst – a new product, a new mode of operation, or new management. Once we have identified these companies, it is a matter of buying them after a period of consolidation along with conviction in demand for their shares.