Nifty Ends Week at Record High; Nifty Realty Up 10.8%; Vodafone Idea Pays Interest to Franklin Templeton AMC

Nifty, +3.7%; Sensex, +3.6%; Nifty Midcap, +4.9%; Nifty Smallcap, +4.1%; Model Portfolio, +3.3%

Market Pulse: Confirmed Uptrend

Distribution Day Count: One

Weekly Market Review

It was a strong week for Nifty as it crossed 17,000 for the first time. The index moved to 17,000 from 16,000 in just 19 trading sessions, which is a new record for the fastest 1,000-point gain. It closed 3.7% higher for the week, the highest weekly gain since February 5. Today, the index was highly volatile. After opening on a positive note, it moved in a zig-zag manner throughout the session. Toward the end, it made a new all-time high and closed near the day’s high.

During the week, the broader market indices outperformed the general market. Midcap and smallcap were up 4.9% and 4.1%, respectively. All sectoral indices closed higher for the week. Nifty Realty (+10.8%) was the top gainer. Nifty Energy and Metal closed 4.1–5.0% higher. The remaining sectors closed constructively higher, with Nifty IT (+1.7%) being the laggard. Today, the advance-decline ratio was in favor of advancers. Of the 1,996 stocks traded, 1,016 advanced, 902 declined, and the rest remained unchanged.

Two distribution days expired during the week, decreasing the count to just one. Further, Nifty is now trading near its all-time high and is placed above all its key moving averages. We would like the index to continue this trend. After such a sudden rally, one must also be prepared for some mild profit booking. In the process, if the index adds a couple of distribution days, stages a reversal, or breaches its key moving averages, we may change the market status to an Uptrend Under Pressure. Reducing exposure to stocks breaking below their 21- or 50-DMA on higher volume is important.