Today’s Action:
The benchmark indices recorded sharp losses. The broader indices fell in line with key composites.
Daily Market Review:
The frontline indices declined significantly after a flat opening in today’s trading session. Volatile session was observed throughout the day. The Sensex and Nifty escaped adding a distribution day due to lower trading volume.
The Nifty started the day on a flat note at 10,322 and lost 0.94% or 96.80 points to touch 10,224.95 in today’s trading session. It traded in the range of 10,216.25 to 10,334.15. Similarly, the BSE Sensex ended the day on a negative note and deflated 0.84% to close at 33,033.56. The trading range was observed to be 32,999.98 -33,417.30.
The broader indices moved in line with key indices, posting significant losses today. The Nifty Midcap and Small cap indices deflated 0.47% and 0.68%, respectively.
The market breadth, which indicates the overall health of the market, was tilted towards losers in today’s session. On the NSE, 623 stocks advanced, while 1,060 stocks declined, and 303 stocks remained unchanged.
On the sector front, all the sectors were under pressure and ended the day on a lower note barring Nifty IT (+0.12%). Metal, Realty, and FMCG were the most beaten down stocks as the indices lost 1.89%, 1.39% and 0.99%, respectively.
The MarketSmith IND 47 Index, our proprietary list of the top 47 stocks in technical and fundamental charts, outperformed the benchmark indices by posting a loss of 0.71% today.
In other news, hotel and restaurant shares were in investors’ radar, as GST council reduced the tax slab to 5% without any tax credit. Hotels with room tariff above INR 7,500 will still attract 18% tax, with full input tax credit. Among the individual stocks, Royal Orchid Hotels share price inflated around 16% intraday to touch a 52-week high of INR 156.
Idea cellular reported Q2 FY 2018 numbers on Monday. The Company reported negative growth rate of about 8.6% to INR 7,465 crore. Net loss was at around INR 11,608 crore against profit of INR 91.5 crore in Q2 FY 2017. The Company got approval from its shareholders in Idea Cellular Infrastructure Services, a wholly owned subsidiary, to sell ATC Telecom Infrastructure for INR 4,000 crore. The stock price was down 4% to INR 92.95.
Today, both the Nifty and the Sensex observed a lower trading volume than yesterday’s trading session. The total distribution day count remains at three for the Nifty and two for the Sensex while the Indian market remains in a 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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