MarketsmithIndia Articles

Nifty Continues its Positive Momentum; Asian Paints PAT Down 67%

Posted Date: July 24 2020
Weekly Action

Nifty, +2.7%; Sensex, +3.0%; Nifty Midcap, +1.9%; Nifty Smallcap, +2.8%; Model Portfolio, +3.1%.

Market Pulse Confirmed Uptrend

Weekly Market Review

Nifty ended positive for the sixth consecutive week, its largest gaining streak since April 2019. For the last three days, it has been witnessing some resistance around 11,225-11,240 level. Closing above that level would help Nifty rally further higher. Today, Nifty opened on a negative note and trended lower to make an intraday low of 11,090. However, Reliance Industries (+4.3%) and IT stocks helped the index to pare most of its losses.

On the weekly front, only three out of 12 indices closed lower. Nifty Energy (+6.4%) was the biggest gainer in the week, followed by Pvt Bank (+3.3%). On the flip side, Nifty Pharma (-2.2%) and FMCG (-1.3%) were the major decliners.

The Indian market remains in a Confirmed Uptrend. However, things can change quickly due to high volatility. We are operating in an uncertain environment where information is distributed unevenly, and it is an environment where outside forces, either intentionally or unintentionally, affect prices across various time frames. We will continue to monitor the behavior of leading stocks and keep an open mind as to how it unfolds. We will wait for solid entry points before buying.

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