Daily Big Picture – Bear Halts the Eight-Day Long Winning Streak


Today’s Action:

Benchmark indices started the day flat, following the Asian markets; Smallcap indices managed to extend their gains.

Daily Market Review:

Key indices lost their eight day winning streak, as both the indices observed some distribution ahead of derivatives expiry.The Nifty started the day at 10,387.90 and lost 0.28% to end at 10,370.25. It traded in the range of  10,355.20-10,409.55. The BSE Sensex started the day at 33,726.65 and lost 0.31% today. After trading in the range of 33,540.46-33,754.17 it ended the day at 33,724.44.

The Nifty Midcap index traded almost flat with 0.07% gains today, while the Small cap indices extended their gains by 0.57%.

The market breadth, which indicates the overall health of the market was in favor of losers today. On the NSE, 725 stocks advanced and 787 stocks declined. A total of 49 stocks remains unchanged.

From the sectoral chart, apart from four sectors, all the sectors ended in red today, the top gainers were Nifty Media (+0.71%), FMCG (+0.11%), and Auto (+0.03%). The top sectors to pull the market down were Nifty PSU Bank (-1.10%), Energy (-0.94%), and Pharma (-0.54%).

The MarketSmith IND 47 Index, our proprietary lists of the top 47 stocks in technical chart and fundamental chart, gained 0.18% today outperforming the major indices.

In Stock news, TVS Motor Company has confirmed the launch of its most powerful motorcycle, Apache 310, for December 6, in Chennai. The price range for this bike is expected to be marginally less than its competitors.

Today, the Nifty attracted one distribution day, due to higher trading volume, compared to yesterday’s trading session; thus, taking the distribution day count of the Nifty to 3.0. On the contrary, the BSE Sensex avoided one distribution day today, due to lower trading volume; therefore, the total distribution day count remains at two on the Sensex, while the Indian market remains in Confirmed Uptrend.

Current Outlook:

– Market environment conducive for new purchases, but remain selective.

– Focus on fundamentally strong stocks breaking out of strong technical patterns.

– Stay disciplined and exercise sound buy and sell rules.

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