Weekly Action
Nifty, +6%; Sensex, +5.7%; Nifty Midcap, +4.8%; Nifty Smallcap, +3.9%; Model Portfolio, -0.6%.
Weekly Market Review
Nifty trended higher this week and gained about 6% in higher volume. Nifty Bank and Financials led the move and gained more than 10%. Nifty reclaimed 21-and 50-DMA, which is a very constructive setup. If Nifty is able to trade above its 21-DMA for few more sessions and downward trending 50-DMA starts turning up, the confidence in the current rally inches up. In addition, the broader market participation in the rally is a good sign. Also, distribution days observed on May 18 and May 22 fell off during the week, as Nifty moved more than 5% higher from those levels.
We remain in a Confirmed Uptrend and are open to increasing risk selectively in quality names coming out of proper bases. But, the volatility is very high in the Market. In May, Nifty made a low of 8,806 and a high of 9,598. Keeping a watch on downslide is also crucial. If we see Nifty add more distribution days, breaching key moving averages, and begin to see leaders falter at support, we will likely shift the market status to an Uptrend Under Pressure. The beauty of our CAN SLIM method is that we need not "expect," "hope," or "wish for" with respect to market action. We will take what the market gives us and continue to monitor unfolding conditions.
We do our best to narrow our focus on stocks that meet our leadership profile. This indicates they are showing strong earnings and sales, and also have an interesting potential catalyst – a new product, a new mode of operation, or new management. Once we have identified these companies, it is a matter of buying them after a period of consolidation along with conviction in demand for their shares.
Big News !!!!
| 1). The cost of non-compliance ❌ | ||
RBI slapped a fine of ₹ 5 crore on Bank Of India (BoI) for violating various rules. The central bank checks the books of banks periodically, to spot the violation of rules and ensure compliance. In one such examination, the bank was booked for non-compliance with provisions related to asset classification, income recognition, and provisioning relating to NPAs. 2). ⚠️ GDP DATA RELEASED !! 
🔸 India's Q4 GDP growth rate stands at 3.1% 🔸 This is the lowest GDP growth rate in the last 11 years. 🔸 The GDP growth rate has been falling for the last 8 consecutive quarters. 🔸 FY20 GDP growth rate stands at 4.2% 
Investors remained cautious in anticipation of the release of domestic GDP data and the accelerating tensions between the US and China. 😟
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Wipro rises after the company names its Thierry Delaporte as its new chief executive officer (CEO) and managing director (MD). Delaporte was previously the CEO of Capgemini Group, the French consulting and technology firm. The company believes Thierry is the right person to lead Wipro, given his exceptional leadership qualities, strong international exposure, and experience in steering transformation and managing technological disruption among other qualities.
What do you think? Please email us any questions or comments.
Regards
Team WODS
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