Markets & Models
A great end to the week as Nifty maintained a bullish momentum for the entire day, even after a gap-up opening. After a short setback last week, Nifty 50 finally gave a break out after consolidation. The index continued a two-day rally and closed at 18,499.35, which is a new high for this year and ended the week with a gain of 1.63%, whereas the Nifty 500 outperformed the Nifty with a gain of 1.88%.
With the Nifty at its peak, multiple bears would have been forced to close their shorts, further fueling the rally.
Regarding models, ‘Quick Short’ and ‘Trending Ten’ were the top-performing models for this week, with a return of 2.35% and 1.26%, respectively.
On the other hand, 'Back Up' underperformed, with a negative return of - 1.59%, followed by ‘BTST’, which ended the week with a negative return of -3.04%.
Leaders & Laggards
This week was bullish for most sectors, but some sectors, like Automobiles, IT, Pharma, and FMCG, were some of the top performers.
Conversely, the Banking sectors took a hit as sectors like Nifty PSU, Private banks, and financial services were some of the underperformers this week.
NEULANDLAB, or Neuland Laboratories, was among the top-performing stocks, with a gain of 35.95% for the month of May, as a part of ‘Sector Superstars’. The company is a leading manufacturer of active pharmaceutical ingredients (API).
ZENSARTECH, Zensar Technologies, held under ‘Buy High Sell Higher’, posted a monthly return of 31.52%, against 23.64% last week. The company is a technology service and digital solution provider mainly operating in two segments, Digital and Application Services (DAS) and Digital Foundation Services (DFS).
INDIANB, Indian Bank, which is a part of ‘Sector Superstar’, was one of the underperformers with a negative return of 15.90% for the month. The stock witnessed selling pressure after muted earning release from the company, failing to meet investors’ expectations.
COCHINSHIP, or Cochin Shipyard, is a stock from the ‘Alpha Ally’ model, which was amongst the underperformers with a negative return of 12.08% for the month of May. The Indian-based company engages in shipbuilding and provides maintenance services to ships, the oil exploration industry, and more.
In Other News
The Indian government is set to release a special Rs75 coin to celebrate the inauguration of the new parliament building and India’s 75th year of independence.
Ola Electric planning for a $1 billion IPO
Ola Electric plans to raise around Rs 6,560 to 8,200 crores from an Initial Public Offering (IPO) with an estimated valuation of $10 billion or Rs 82,000 crores.
Elon Musk, the CEO of Tesla, revealed that the company had shortlisted India as a potential candidate for setting up a new factory, which might be finalised by the end of this year.
As Indians received the news of withdrawing the Rs 2,000 notes, demand for non-essential items skyrocketed. Goods like expensive watches, Cash on delivery for food orders, donations via cash, and other activities have increased multifold.
RBI Governor Shaktikanta Das explained at a press conference that the Rs 2,000 currency notes were primarily introduced to meet the country’s currency requirement after the 2016 demonetisation. However, this was not the only reason for the withdrawal.
With that said, if you have any Rs 2,000 notes lying around, there is no need to rush to the banks as you still have around four months before the deadline. But do you think this is why the banking stocks were underperforming this week?
Try to connect the dots; we will return with something new next week. Stay tuned!