Broader Markets Outperform for the Week; Media and Realty Stocks Lead the Rally

Nifty, +1.7%; Sensex, +1.5%; Nifty Midcap, +3.7%; Nifty Smallcap, +5.4%; Model Portfolio, +1.6%.

Market Pulse Confirmed Uptrend

Weekly Market Review

Nifty, after testing 21-DMA last week, staged a reversal and formed higher high and higher low in the daily chart for the first three trading sessions. On Thursday, the index was highly volatile in light of weekly F&O expiry and closed 0.9% lower. Thursday’s action qualified as a distribution day and hence the count increased to four. Increased distribution indicates weakness in the market. Today, after a gap up opening, Nifty traded in a narrow range and closed the week with a gain of 1.7%.

On the sectoral front, except Nifty Pharma, all other sectoral indices closed in the green. Nifty Media continued to lead the rally with a gain of 12.5% followed by Nifty Realty which advanced 8.2% during the week. Nifty PSU Bank and Nifty Auto gained 3–4%. Nifty Midcap (+3.7%) and Smallcap (+5.4%) outperformed the major index.

The Indian market remains in a Confirmed Uptrend. We would like to see fresh names flexing their muscles for a sustainable rally. Finding favorable entries into powerful breakouts may be the best use for new money in the current market. However, things can change quickly due to high volatility. We are operating in an uncertain environment where information is distributed unevenly, wherein outside forces, either intentionally or unintentionally, affect prices across various time frames. We will continue to monitor the behavior of the market and keep an open mind as to how it unfolds.