Nifty Bank Gallops During the Week; INR Appreciates 1.9% Against USD

Nifty, +2.4%; Sensex, +2.7%; Nifty Midcap, +2.3%; Nifty Smallcap, +3.7%; Model Portfolio, -0.5%.

Market Pulse Confirmed Uptrend

Weekly Market Review

Nifty gapped up higher in all the five sessions during the week and also managed to close in the green. Volume was relatively lower in the first two sessions, but higher during the last three. Nifty closed 3% and 6% above its rising 21-and 50-DMA, respectively. Broader markets also continue to do well. It has four distribution days, with one set to expire next week. On the sectoral front, barring Nifty FMCG (-1.1%) and Metal (-0.1%), all other indices closed higher. Nifty Bank (+10%) outperformed, followed by Financial Services (+5%), Realty (+4%), and Auto (+2.3%). All the sectoral indices are trading above their 50-DMA. Barring Nifty Bank, Financial Services, and Realty, all other indices are trading above the 200-DMA.

The Indian market remains in a Confirmed Uptrend. Despite the rise in distribution day count on Nifty, we remain positive on the general market as the broader market is gaining strength. We would like to see fresh names flexing their muscles for a sustainable rally. We do think it is important to be selective in this environment and we would remain disciplined with entries, requiring a basing period before establishing fresh positions. We will continue to monitor the behavior of the market and keep an open mind as to how it unfolds.