Daily Big Picture – Benchmark Indices Extend Rally; Sloppy Second Half Trims Away Gains

dily-big-picture-MarketSmith_IndiaToday’s Action:

Benchmark indices trade flat, while broader indices shed some of the gains.

Daily Market Review

The benchmark indices extended their rally in the early hours of the trading session, however, it lost most of its gains as the day progressed and finally ended in flat.

 The Nifty started the day higher at 10,061.80. After hitting an all-time high of 10,114.50, the benchmark index trended lower to the day’s low of 10,006.50. It held onto the 10K mark to close flat at 10,020.55, unchanged from yesterday. On a similar note, the Sensex opened at 32,519.44 points and posted a marginal gain of 0.02% in today’s trading session. The day’s low was observed at 32,326.90, while the day’s high was 32,669.90. It made a new all-time high yet again, for a fourth consecutive session.

 The market breadth, indicating the overall health of the market, was tilted towards the negative end. On the NSE, 384 stocks advanced, compared with 1,120 stocks declining, and 38 stocks remaining unchanged.

 The MarketSmith India IND 47 Index, which lists the top 47 stocks in chart on fundamental characteristics, declined 1.31%, today.

 The broader indices displayed a divergent trend today. At the end of the trading session the Nifty Midcap and Smallcap both lost 0.28% and 0.10%, respectively.

 On the Sectoral front, the breadth was in favour of the losers. The top gainers were Nifty Financial Service, Bank and Pvt bank indices incrementing 1.77%, 1.02%, and 0.87%, respectively, while the Nifty IT, Pharma, Metal were the top losers with the decrements of 1.58%, 1.56% and 1%, respectively in today’s trading session.

 Axis bank has informed the BSE about the share purchase agreement it has entered with Jaspers Infotech Private Limited, parent company for Snapdeal, to buy a 100% stake in its subsidiary Freecharge in an all cash deal worth INR 385 crore.

 The U.S. Federal Reserve decided to keep the interest rates unchanged hinting at its confidence in the U.S. economy. It kept the benchmark lending rate in the range of 1% to 1.25%. It also announced that it will implement its balance sheet normalization program very soon. Following this, the U.S. stock market surged while the bond yield dropped.

Maruti Suzuki announced its June quarter results today. The Company reported a 16% revenue growth, missing the consensus estimates. The Company’s stock gained 0.45% in today’s trading session.

 Today, the Nifty observed a higher trading volume while the Sensex witnessed a lower trading volume compared with yesterday’s trading session. The distribution day count for the Nifty stands at 1.0, while for the Sensex it is 2.0, 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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