Weekly Report: Market recovers from its five-week downtrend; metals and real estate outperform

In the week ending September 1, the market ended a five-week losing trend with solid gains. The benchmarks were under pressure due to conflicting global cues, weak monsoons in August, and rising crude oil prices; nevertheless, positive investor sentiment was buoyed on Friday by solid GDP and Manufacturing figures.

The Nifty50 began the month of September on a high note as the index not only closed above the 21-day EMA (exponential moving average) on September 1 (located at 19,405), but it also demonstrated a strong reversal with a bullish candlestick pattern on the weekly charts following the formation of an inverted hammer pattern the previous week.

As a result, closing above 19,500 in the next few days can pave the way for levels as high as 19,800, with critical support at the 19,250–19,200 range, which the market has so far held.

The BSE Sensex increased by 0.77 percent or 500.65 points this week to conclude at 65,387.16, and the Nifty50 increased by 0.87 percent or 169.5 points to end the week at 19,435.30. The BSE Small-cap index increased by 3.8%. The BSE Mid-cap Index increased by 2.3%. The BSE Large-cap Index increased by 1%.

On a sectoral level, the BSE Metal index increased by 6%, the BSE Realty index increased by 5.7%, the BSE Telecom index increased by 4.5%, and the BSE Power and Auto indexes both increased by 3.4%. The BSE FMCG index, on the other hand, decreased by 0.5 percent.

In this week’s trading, domestic institutional investors (DIIs) purchased shares worth Rs 9,570.03 crore, while foreign institutional investors (FIIs) kept up their selling for the sixth week in a row. In contrast, FII sold shares worth Rs 20,620.65 crore during the month of August while DII purchased shares worth Rs 25,016.95 crore.

The rupee ended this week slightly lower than it had on August 25 when it closed at 82.65 to the dollar, at 82.72 on September 1.

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