Nifty, +2.2%; Sensex, +2.4%; Nifty Midcap, +0.5%; Nifty Smallcap, -0.1%; Model Portfolio, -1.8%.
Market Pulse: Confirmed Uptrend
Weekly Market Review
Nifty retained its positive momentum for the third consecutive week. During the week, it gained 2.2% and moved closer to its 200-DMA (10,885). On Friday, it opened on a higher note and moved in a narrow range of 70 points during the day. Broader market indices, Nifty Midcap (+0.5%) and Smallcap (-0.1%) underperformed during the week.
It was a mixed reaction on the sectoral front. Nifty Auto (+3.6%) was the biggest gainer in the week, followed by Financial (+2.7%) and FMCG (+2.6%). On the flip side, Nifty Realty (-3.8%) was the biggest decliner.
The Indian market remains in a Confirmed Uptrend. Nifty holding its 100-DMA (9,932) is important for the rally to continue. On the other side, 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.
Hdfc Life Insurance Co: The company advanced 4.4% on the back of speculation that it would be added to the Nifty50 index in the semi-annual review of the index.
Reliance Industries: Intel Capital to invest Rs 1,894 crore in the Jio Platforms, becoming the eleventh investor in the company in about two months. The stock advanced over 100% from the lows made in March.
Key events to watch for in the upcoming week:
July 10: Forex reserves, May Industrial production, and May manufacturing production.