The weekly action of the Indian market resembled a tug of war contest between two teams where bulls overpowered bears on the back of a strong rally on Friday. The Nifty closed at a lifetime high, while the Sensex managed to close above the psychological 3,7000 mark. Technically market is in uncharted territory and there is no significant weakness visible.
Be selective on new buys
Given the fact that the market breadth has turned strong over the last one week or so, it will be important to see if the market sustains the current euphoric mood. While the technical parameters like trend strength indicator ADX are hinting towards a stronger buying in the days to come, the risks of a downside will always remain.
The participation of mid and small cap stocks encouraging, as the Nifty midcap and smallcap posted weekly gains of 1.8 per cent and 2.4 per cent, respectively. As the market is in a clear uptrend, the overall current market conditions are conducive for new purchases but remain selective.
- Hans Research Team