Today’s Action:
Benchmark extends losses with higher volume. Broader markets follow suit.
Daily Market Review:
The Indian market fell consecutively for the second day this week. Mirroring the weakness of the global market, the benchmark index was in a negative territory throughout the day. However, the RBI’s monetary policy further dampened investor sentiment, leading to an increase in the distribution count.
The monetary policy committee today voted to keep the interest rate unchanged. The committee has decided to keep the repo rate or lending rate unchanged at 6% amid inflation concerns. Consumer price inflation has increased to 3.58% in the month of October when compared with a low of 1.5% in June. The committee has also increased its inflation forecast to 4.3-4.7% in the third and fourth quarters of FY 2017. The next review meeting will be held on February 6 and 7, 2018.
The Nifty started the day lower at 10,088.80 and lost 0.73% to end at 10,044.10. It traded in the range of 10,033.35-10,104.20. The BSE Sensex erased 200 points today. After starting the day at 32,798.50, it traded in the range of 32,565.16-32,804.75 before settling the day with a loss of 0.63% at 32,597.18.
The actions in the broader markets were also weak, as the Nifty Midcap and the Nifty Smallcap deflated 0.95% and 0.40%, respectively.
The market breadth, which indicates the overall health of the market, was weak today. On the NSE, 581 stocks advanced and 946 stocks declined. A total of 44 stocks remain unchanged.
Weakness was witnessed across all the sectors indices, barring the Nifty IT indices, which ended with a gain of 0.45%. The top sectoral losers in today’s trades were the Nifty PSU Bank (-2.10%), Metal (-1.95%), and Financial Services (-1.29%).
The MarketSmith IND 47 Index, our proprietary list of the top 47 stocks in technical chart and fundamental chart, lost 0.64 % today.
In stock talk, Punjab Chemical & Crop Protection hit a record high as the stock surged 10.79% intraday to INR 470.80. The Company has announced that its December 8, 2017 meeting will consider its options to raise long-term resources by way of further public offering, qualified institutional placement, debt issue, or any other method as decided by its board of directors. The Company will also announce Q2 results on December 8, 2017.
In other economic news, the Government of India announced incentives worth INR 8,450 crore yesterday to boost exports and employment in labor-intensive sectors in the mid-term review of the five-year foreign trade policy (FTP), 2015-2020.
The trading volume at the bourses was marginally higher than Tuesday’s session, leading to a distribution count of five on both the indexes. Since the Nifty is trading well below its 50- and 100-DMA with the distribution count of five, we have changed the Indian market status to an Uptrend Under Pressure.
Current Outlook:
– Be cautious with any new purchases.
– Make a defensive game plan for your portfolio.
– Stay disciplined and exercise sound buy and sell rules.
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