Bulls take a breather — What’s next for the market?
Grab your chai ☕︎! Let's dive into the weekly buzz of the Indian stock market.
Hello🙋♂️!
We are here with the 73rd edition of ‘Sharpe Insights’.
We have a lot to talk about this week. But before that, we have two big announcements for you.
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Now, let’s look at the important data points of the week.
Global Macro Factors🌍
The global macro factors were neutral this week. Crude was marginally up by 0.35% this week. It is now trading above the $72 mark. Gold rallied by another 3.31% this week. It is now trading above the $3100 mark for the first time. If you look at the chart there has been a one-way move in the last few weeks.
The dollar index was flat this week. The rupee was up as USD INR fell by another 0.55% during the week. It is trading at 85.51. The US 10-year Treasury Yield was flat. It is now at 4.25% vs 4.25% last week.
The S&P 500 was down by 1.53%. It is now trading below the 5580 level! The increasing chances of a recession in the USA is the main reason for the fall. Indis’s foreign exchange (forex) reserves jumped by $4.529 billion to $658.8 billion during the week ended March 21, the data from the Reserve Bank of India showed.
Market Performance📈
This week, we saw a consolidation in the market after the strong bounceback of last week. Large caps ended the week in green while mid and small caps were marginally down. The Q4 result season is on the horizon and now it will help in deciding the market direction.
The Nifty 50 was up by a decent 0.72%. The Nifty 100 and Nifty 500 also rallied by 0.65% and 0.31% respectively. While the Nifty Midcap 100 was down by 0.34%, the Nifty Smallcap 100 was the top loser and ended the week with a fall of 0.55%.
Now, let’s talk about the stocks. Bajaj Finserv was the top gainer among Nifty 50 and Nifty 100 names with a gain of 8.39%. BEML was the top gainer among Nifty 500 and Nifty Smallcap 100 stocks, with weekly gains of 15.58%. BSE topped the gainers’ chart among Nifty Midcap 100 names.
Sector Analysis📊
This week, we had a mixed bag at the sectoral level. Some sectors showed strength but many ended the week in flat to red territory.
BFSI, PSUs and Service companies outperformed during the week while Pharma, Realty, Auto and Media stocks struggled.
Now, let’s discuss market breadth. We gauge it by looking at stocks trading above their 50-day EMA. The number bounced strongly this week. It is at 46.40% vs 50%+ last week. So, there was a marginal fall this week. This means that stocks are holding their ground for now. This is a good sign as a one-directional move can’t sustain without a pause.
Sectors To Watch
Many premium members are using RRG charts on sharpely. It helps you to find strong sectors and stocks based on relative strength and momentum. You can check it out here. Now, let’s see what it says this week.
Similar to last week, we can see that many sectors are between the lagging and improving quadrants (red and purple ones). But there are some interesting names on the strong side of the chart. Keep an eye on Banking and Finance, Metal, PSUs and Oil and Gas space. They are showing high relative momentum at the moment.
On the RRG chart, you can also compare stocks from these sectors by just selecting the index to find the strong names! Finding the right sectors and stocks can’t be more easy than this! So check this tool out now!
That’s it for this week, folks. See you next Sunday!