Nifty, +1.4%; Sensex, +1.3%; Nifty Midcap, +2.8%; Nifty Smallcap, +2.9%; Model Portfolio, +1.7%.
Market Pulse Confirmed Uptrend
Weekly Market Review
After retaking its 100-DMA last week, Nifty was able to sustain the momentum and marched toward its 200-DMA this week. It is just 4.5% below its 200-DMA, which is a crucial level. The current rally may further strengthen if the index closes above its 200-DMA. During the week, a new distribution day was added, which might weigh on the market. On Friday, Nifty opened the session around 100 points higher and quickly succumbed to the selling pressure. However, in the second half, buying helped the index close near the day’s high.
On the sectoral front, barring Nifty Realty (-0.8%), all the indices closed higher for the week. Nifty PSU Bank (+5.9%) was the biggest advancer, followed by FMCG (+3.7%), and IT (+3.4%).
The Indian market remains in a Confirmed Uptrend. Nifty holding its 100-DMA (10,008) is important. If Nifty adds distribution days and breaches logical support levels, we may downgrade the market status to an Uptrend Under Pressure. It is prudent to only invest in stocks that have strong fundamentals (i.e., good sales, earnings, margins, etc.) and that are breaking out of sound base structures on heavy volume. 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.