Today’s Action:
The key indices opened higher today. However, the headline indices slipped as the day progressed, and closed in the red. Broader indices showed a divergent trend, with the Nifty Midcap index falling, while the Smallcap index made gains.
Daily Market Review
The benchmark equity indices, after opening higher, fell in today’s session, after facing resistance near its all-time highs. Going ahead, good results with regards to the ongoing Q1 FY 2018 earnings season will be key for the Nifty to push towards the 10,000 mark.
The Nifty opened higher today at 9,920.20. After touching an intraday high of 9,922.55, the index lost ground, slipping to an intraday low of 9,863.45, before finally settling at 9,873.30, down 0.27% from yesterday’s closing price. The BSE Sensex, after opening higher at 32,033.82, reached an intraday high of 32,057.12. The index, however, slipped as the day progressed, and touched an intraday low of 31,859.50. The index finally settled at 31,904.40, losing 0.16% from yesterday’s close.
The market breadth, indicating the overall health of the market, was in favor of the losers, with 690 stocks advancing on the NSE, compared with 817 stocks declining, and 62 stocks remaining unchanged.
The broader indices showed a mixed picture today. The Nifty Midcap index lost 0.29%, while the Smallcap index advanced 0.29% in today’s session.
The MarketSmith India IND 47 Index, which lists the top 47 stocks in chart on fundamental characteristics, gained 0.25% in today’s trading session.
On the sectoral front, the breadth was in favor of the losers. Among the gainers, the Nifty Financial Services, Private Bank, and Realty Indices stood out with gains of 0.42%, 0.34%, and 0.27% respectively. On the flip side, the Nifty PSU Bank, Metal, and Pharma indices slipped the most, losing 1.16%, 0.92%, and 0.92% respectively.
As the Union government continues with its reforms, the Uttar Pradesh government has been advised by the Centre to scrap the state administrative prices (SAP) on sugarcane. The state has been told to keep prices under fair and remunerative prices (FRP) based on the Rangarajan formula. Even as the Centre’s advice is recommendatory in nature, the Indian Sugar Mills Association (ISMA) has welcomed the move. The new formula will ensure that the sugar mills will be able to pay the farmers as per their revenue realization.
In the corporate space, the salt-to-software conglomerate Tata Group is deliberating on reorganizing its technology and infrastructure businesses, as the Group is looking to reduce the number of companies it manages. As part of this proposal, Tata Consultancy Services (TCS) may take over the control of Tata Elxsi, a product engineering and solution firm, along with some unlisted Tata companies in the technology space. There are also plans to combine several infrastructure businesses into a single company, which could include the air-conditioning and engineering services provider Voltas, along with other unlisted Tata firms.
Shares of Godrej Industries have hit a record high of INR 699 in today’s trade, up 3.9% intraday, after its subsidiary Godrej Agrovet filed draft red herring prospectus with markets regulator SEBI yesterday. Godrej Agrovet, in which Godrej Industries holds 60.8% stake, is aiming to garner about INR 1,000-1,200 crore through the public issue.
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.
To Read Detailed Reports including Stock Recommendations, Idea Lists, Evaluate Stocks etc. Subscribe to MarketSmith India.
Disclaimer: William O’Neil India Investment Adviser division, is one of the divisions of William O’Neil India Private Limited, which is a company incorporated under the Companies Act 1956. William O’Neil India Investment Adviser division is a registered investment advisor with the Securities and Exchange Board of India and through its online product, MarketSmith Indiaintends to provide quality equity research material and information to its customers. The investments discussed or recommended through MarketSmith India may not be suitable for all investors and hence, you must rely on your own examination and judgement of the stock and company before making investment decisions. Data provided through MarketSmith India is for information purposes only and should not be construed as an offer or solicitation of an offer to buy or sell any securities. Information and discussions made available through MarketSmith India contain forward looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. William O’Neil India Investment Adviser division or its employees / directors or any of its affiliates are not responsible for any losses that may arise to any person who has made investments based on the contents of this document. Past performance never guarantees future results. Investment in equities are subject to market risks and despite the best efforts to provide market leading research, William O’Neil India would like to exhort its users to acknowledge and fully understand the risks involved which might include but not limited to loss of both principal and income. Data and content provided through MarketSmith India is to be consumed only by the intended recipient and must not be redistributed any further.
Registered office address: William O’Neil India, Technomark Building, A-4, NGEF Ancillary Industrial Estate, Graphite India Road, Mahadevapura, Whitefield, Bangalore 560048, Phone: + 91 80 67453802, Fax: + 91 80 6745381, Website: http://www.williamoneil.com/india/, For investor queries:queries@marketsmithindia.com; For grievances: grievances@marketsmithindia.com; For compliance officer:compliance@marketsmithindia.com, Corporate Identity Number: U74999KA2012FTC066881, Investment Adviser SEBI Regn. Nos: INA200005125 valid till 11 July 2021.