Chart Of The Day – Minda Industries Leaps 14.2%

One of the country’s fast-growing auto parts manufacturer, Minda Industries reported stellar numbers in Q4 FY 2018. Its revenues grew 53% and EPS jumped 123% y/y. Despite a weak market sentiment, the stock witnessed massive buying interest, as it rallied 14.2% on huge volume today.

Minda Industries_MarketSmithIndia

Daily Big Picture – Distribution Drags Nifty Below 50-DMA

Today’s Action:

Frontline indices resume struggle; Nifty experiences distribution, breaches 50-DMA.

Daily Market Review:

After providing a breather in yesterday’s session, bears were back in business today.

Selling pressure escalated as the day progressed, leading to 0.9% and 1% cuts in the Sensex and the Nifty, respectively.

The Indian stock market has come under selling pressure in recent times amid weakening macro conditions. Consistently rising fuel prices and a depreciating rupee pushed the country’s 10-year bond yield to 7.87%, the highest level in about 3.5 years. Amid inflation concerns, market participants are fearing a rising interest rate environment in the country.

To keep a check on fuel prices, the Indian government may consider reducing excise duty on fuel. This will negatively impact tax collections, which have already been affected following the introduction of GST.

To provide temporary relief to consumers, the government could even ask oil management companies to absorb further price hikes. Shares of oil marketing companies were under pressure today and sold off 4-8%.

In the broader market, Nifty Midcap and Smallcap indices gave away early gains and slipped into negative territory owing to the late sell-off in key composites. Nifty Midcap and Smallcap lost 0.6% and 0.5%, respectively.

Barring Nifty PSU Bank (+2.7%), all the sector indices had a terrible session, with Metal (-3.7%), Media (-1.3%) and Realty (-0.9%) being the leading losers.

Coming to the market breadth, losers dominated winners in a ratio of 3:2.

MarketSmith India’s IND 47 index, our proprietary list of top 47 stocks in chart and fundamental characteristics, lost 0.1% today, faring relatively better than the market.

Talking about market direction, the Indian market remains in an Uptrend Under Pressure. Today’s loss came on higher volume on Nifty, resulting in a distribution day on the index. The distribution day count now stands at four on the Nifty and two on the Sensex.

For the first time since April 11, the Nifty closed below its key support of 50-day line. The index is now down 6.6% from its yearly high.

Broader indices, on the other hand, have corrected 15-20% from their January highs. Both Midcap and Smallcap indices have seen massive selling pressure in the past five weeks and are currently in a Downtrend.

Current Outlook:

– Be cautious with any new purchases

– Form a defensive game plan for your portfolio

– Stay disciplined and exercise sound sell rules

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Daily Big Picture – Market Offers Respite; Halts 5-Day Losing Streak

Today’s Action:

Benchmark indices post small gains in a range-bound session.

Daily Market Review:

India’s stock market finally managed to close in positive territory, bringing an end to a five-session losing run.

The Sensex and Nifty finished today’s range-bound session with gains of 0.1% and 0.2%, respectively.

Broader market indices fared better than their frontline peers as the Nifty Midcap and Smallcap indices pocketed gains of 0.3% and 1.5%, respectively.  Continue reading “Daily Big Picture – Market Offers Respite; Halts 5-Day Losing Streak”

Chart Of The Day – TCS Undeterred By Market Sell-Off

Tata Consultancy Services advanced to a new high, snubbing a weak market sentiment. The Company announced June 2, 2018 as the record date for a 1:1 bonus issue. The stock had broken out of a double-bottom base pattern on April 12 and since then it has advanced 14% from its pivot price of Rs 3,127.

Tata Consultancy Services_MarketSmithIndia