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How to Spot Market Bottoms – MarketSmith India Webinar covers the following:
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• How to use Follow-Through Day to spot new uptrend
• How to make money when new uptrend begins
Shankara Building Products rallied over 10% on handsome volumes today. The stock broke out of a consolidation base pattern clearing its previous resistance level of INR 1112.40.
Today’s Action:
Benchmark Indices started the day on a positive note and as the day progressed it held on to its momentum. The Sensex gained over 270 points, while the Nifty closes above 9,850, the broader indices outperformed the frontline indices.
Daily Market Review:
The Indian Market continues to climb higher tracking positive cues from the world indices. After a gruelling previous week, the markets made a strong comeback in the past two trading sessions. The equity indices started the day on a positive note and were trading range bound. However, near the close of the today’s trading session, both the Sensex and the Nifty extended its gain sharply to post a gain of 0.88% and 0.89% respectively.
The Nifty touched a high of 9,857.90 after opening at 9,803.05 and finally settled at 9,852.50 for the day. After opening at 31,407.47 the Sensex traded in the range of 31,379.25 to 31,593.39 points, it finally ended the day at 31,568.01.
Broader markets also put up a great show today, they beat the frontline indices with the Nifty Midcap and the Smallcap both posting a gain of 1.19% and 1.38%, respectively.
The MarketSmith IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics, gained 1.26% in today’s trading session.
Apart from Nifty FMCG all the sectors displayed some strength today, the top three performing sectors today were Nifty Realty, PSU Bank, and the Metal posting a gain of 3.44%, 2.09%, and 1.72%, respectively.
Investors continue to display subdued interest as was observed from lower volumes today. The Sensex dropped a distribution day today due to ageing and bringing down the total distribution day count for the Sensex to 7. With a distribution day count of 6 on Nifty, the market status is currently “Uptrend Under Pressure”.
In stock talk, Infosys gained 3% intraday after the buzz that Nandan Nilekani is likely to return to head the affairs of the Company. According to sources, clarity on his role at Infosys is expected in the next 48 hours.
The National Company Law Tribunal has recently started insolvency proceedings against Jaypee Infra due to incomplete projects. The Interim Resolution Professional (IRP) announced that The Cabinet today has given “in-principle approval’’ to the public sector banks to set up an alternative mechanism to complete the process of consolidation. The name of the banks proposed to be merged will be submitted to a group of ministers based on certain deciding factors such as geographical coverage, comparable asset quality and capital adequacy ratios.
From the results corner, Gati reported a threefold increase in its Q1 FY 2018 net profit, due to this the stock price surged 8% and touched an all-time high price of INR 156.65 intraday.
Tata Power’s Q1 FY 2018 profit jumps 329%, y/y to INR 142 crore. The business capacity of Tata Power crossed 2,000 MW and non- fossil fuel portfolio stood at 3,144 MW, an increase of 92% compared to last year. The tone of the management remained aggressive towards further investment in the renewable energy projects, the Company has become one of the largest renewable energy players in the last five years.
Current Outlook:
– Be cautious with any new purchases.
– Form a defensive game plan for your portfolio.
– Stay disciplined and exercise sound sell rules.
To Read Detailed Reports including Stock Recommendations, Idea Lists, Evaluate Stocks etc. Subscribe to MarketSmith India.
Avenue Supermarts jumps 3.3%, scales new high on above-average volumes.
Today’s Action:
Despite extreme volatility observed today, the benchmark indices ended in green.
Daily Market Review
Amidst volatility during the entire trading session, equity indices edged higher by erasing some of its previous day losses. Frontline indices started the day on a good outing, tracking from its Asian peers. However, as the market approached the closing bell, both the Sensex and the Nifty ended the day with gains of 0.11% each.
The Nifty touched a high of 9,828.45 after opening at 9,815.75 and finally settled at 9,765.55 for the day. The Sensex displayed a similar performance today, after opening the day at 31,393.93 it traded in the wide range of 31,484.28- 31,241.50 and finally ended at 31,291.85
Broader markets continue to disappoint as they failed to track the major indices. The Nifty Midcap and Smallcap both posted a loss of 0.76% and 0.57%, respectively.
The MarketSmith IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics, declined 0.71% in today’s trading session.
On the Sectoral Chart, most of the sectors had something to take home barring Nifty Realty, Auto and PSU Bank which slid 0.89%, 0.85% and 0.41% in today’s trade. While today’s gain could be attributed to the top three performing sectors which were Nifty Pharma, Media and Pvt Bank which gained 0.90%, 0.35% and 0.23%, respectively.
Lower volumes in the exchanges today compared to the yesterday’s trading session serves as a testament to the subdued interest among investors. The distribution day count for the Nifty and the Sensex currently stand at 6.0 and 8.0, respectively. The market status is currently “Uptrend Under Pressure”.
The market witnessed yet another IPO today brought by Apex Frozen Foods, the Company plans to raise INR 152 crore through the issue that will close on August 24. Apex Frozen Foods is one of the integrated producer and exporter of shelf stable quality aquaculture products. The price band fixed for the issue ranges from INR 171-175 per share and approximately 87 lakh equity shares will be offered through the book building route. The Company proposes to use the proceeds for setting up a new shrimp processing unit with a capacity of approximately 20,000 MTPA.
The inter-ministerial group on telecom, which was set to ease the financial stress for the telecom sector, is expected to finalise its recommendations to deal with issues such as an extension of deferred payment schedule, migration from prime lending rate to the marginal cost of funds-based lending rate regime for interest payments.
Current Outlook:
– Be cautious with any new purchases.
– Form a defensive game plan for your portfolio.
– Stay disciplined and exercise sound sell rules.
To Read Detailed Reports including Stock Recommendations, Idea Lists, Evaluate Stocks etc. Subscribe to MarketSmith India.
