Weekly Market Recap:
It was the week of consolidation and side-ways movement, however, market gradually inches higher and managed to lock some gains. Nifty in the week gone by was up by 106.1 points and closed at 10389.7; similarly Sensex was up by 336.4 points and closed at 33679.24.
No leaders and laggards were visible from sector rotation point of view, while metals witnessed some profit booking and IT index witnessed some buying interest.
Current Outlook:
I have observed some breakout kind of reaction in few groups of stocks after consolidating for more than 3-4 months, which signals trader’s increasing appetite for risk, an essential component to any bull market. Although rising crude oil prices may cause some problem in coming days, which require serious attention from investors and traders. However, so far market seems to be quite resilient and ignoring hike in crude oil prices, which suggest the internal strength in the market. A change of character in the chart would need to be detected before any weakness persists.
While it’s always important to find a nice entry on pull back and this week fits the criteria to do so, with a couple of indicators drawing my attention with virtually no technical damage. Hence, I still maintain my bullish stance on the market.
Conclusion:
Going forward market may test our patience while remain in range bound or sideways before resuming it cyclical long-term uptrend. Therefore stock selection is the key during that period, while keeping in mind risk-reward ratio favorable and always remember to your selling discipline.
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Invest with patience….!! Be a Savvy Investor..!!
Pankaj