Daily Big Picture – Key Indices Observe Stalling Day; Broader Markets Under Pressure

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Today’s Action:

The Nifty and the Sensex are on a spree of clocking new highs in three out of the past four trading sessions. Ending nearly flat of high trading volume, the key composites observed a stalling day.

Daily Market Review

The key benchmarks extended their gains to hit all-time highs in today’s session. However, by the end of the day, they consolidated and erased their morning gains to end flat. The broader markets closed at a decent gain, but continue to remain under pressure, trading slightly below their 50-day moving average.

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Why the Buyer Demand Rating is a Key to Finding Great Stocks

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“For the best prospects, do a price and volume check of each week within the stock’s base to help you conclude if the stock is showing sound accumulation or too many price and volume defects. Next, do a fundamental analysis checking for excellent earnings, sales and return on equity.” – William J. O’Neil, MarketSmith Founder

Winning stocks typically start rising in heavy volumes before they move onto new highs. The strong volume increases indicate that mutual funds and other big funds are actively taking positions.

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