Today’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.
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.