Weekly Market Recap
What a stupendous rise we have witnessed this week…! Last week, I mentioned market enunciated no sign of relief while ebbing off from the cliff and this Monday picture changed dramatically during the budget speech that invoked such a powerful upside momentum whose aftershock remain felt for the rest of the week. Finally, market reached to new all-time high and shrugged off all the negativity appeared last week.
In the week gone by the benchmark SENSEX had a gigantic upside of 4445 points, or 9.61% to achieve the new milestone of 50731, similarly, NIFTY added whopping 1289 points, or 9.46% to settle at 14924. While BANKNIFTY surpassed all the expectations and terrifically gained over 16% or 5089 points in a week.
Current Outlook
Well… the outlook which appeared to be gloomy to me last week is no longer remains the same. As I concluded with the cautionary note, provided the NIFTY broken the major intermediate support of 50 SMA and with all other reasons got vanished in a dramatic fashion, in fact promptly produced a strong buying signal that remained persist through out the week. Moreover, as I mentioned earlier the dynamics are changing amazingly fast so as my views; that is a key at this time.
Although, the rise was quixotically implausible, however, after such an ostentatious move on Monday aftershock was obvious in following days and that turned out the same. Now Game Over? Its hard to say, but it takes some time for a powerful momentum like this to turn out of the gas. Financials were clear-cut the star performer of the week and fuelled this effervescent rise. While the other stocks were working its way to side-ways to positive, but the financial stocks were heating up the over-all market. Of course, anyone who has been investing/trading in the market long enough knew that this wild, awe-inspiring ride would come to an end.
However, there is going to be great opportunities in other area of the market, like realty is on the verge of breaking out after a long year of consolidation if that happens the upside would be surprisingly huge. On the other hand, FMCG completely standout of this epic move, despite stayed under water and most of the stocks posted negative return this week. Perhaps, these stocks may act as source of funds for the next breaking out sectors as they (FMCG) have been enjoyed the luxury of rich valuation for quite long.
A lot more is happening beneath the surface which I will keep sharing, however, as of now the outlook is appeared to be filed with exuberance, hence gumption and resilience is so much required at this time.
Conclusion
Fundamental and technical analysis will continue to play a vital role in determining the value and possible direction of a company’s stock price. And based on conventional methods the fundaments are getting frothy day by day. Hence, we should no longer be surprised when we see a metamorphosis turnaround, in fact we should always prepare for that, however, till that happen just make sure you are on the right side of any trade else it could become devastatingly painful.
Feedback, comments, suggestion or questions are welcome at below comment section or at [email protected].
Be Patient…; Be a Savvy Investor..!!
Pankaj