Nifty, +1.2%; Sensex, +1.2%; Nifty Midcap, -0.1%; Nifty Smallcap, -0.4%; Model Portfolio, +2.2%.
Market Pulse Confirmed Uptrend
Weekly Market Review
Nifty continued its positive momentum for the fifth consecutive week and retook its 200-DMA, which was lost in February. On a technical perspective, retaking 200-DMA is a crucial sign for further bullishness. Today, it opened on a slightly positive note and traded in a tight area, until the last hour buying, which helped Nifty retake its 200-DMA. Today’s action missed an additional follow-through day as the volume is lower than yesterday's. Out of Nifty50 stocks, Bharat Petroleum (+12.7%) and Oil & Natural Gas (+5.5%) were the major gainers, while Hindalco Industries (-2.4%) and Britannia Inds. (-1.8%) were the major draggers.
On the weekly front, sectoral indices action was mixed. Nifty IT (+8.1%) was the biggest gainer in the week, followed by FMCG (+2.0%). On the flip side, Nifty Realty (-4.7%) and PSU Bank (-3.9%) were the major decliners.
The Indian market remains in a Confirmed Uptrend. Nifty retaking its 200-DMA (10,869) is a bullish sign, which may continue to trend further higher. 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 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.