Todays Action:
The benchmark indices continue to decline, even after a positive start. Broader market follows the key composite.
Daily Market Review:
Tracking positive global cues, the benchmark indices started the day on a positive note. However, profit booking throughout the session, reversed all morning gains. The earning season kept the investors skeptical leading to a fall in the frontline indices.
The Nifty started the day almost 26 points higher at 10,477.15 and ended lower at 10,352 (-0.95%). It traded in the range of 10,340.80-10,485.75. Similarly, the BSE Sensex started on a positive note at 33,781. However, after trading in the range of 33,341.82-33,865.95, it finally closed at 33,370.76 (-1.07%).
Similar to the frontline indices, broader composites also ended the day in red. The Nifty Midcap index and Nifty Smallcap index recorded significant losses, giving away 1.64% and 1.71%, respectively.
The market breadth, which indicates the overall health of the market was titled toward the loser in today’s session. On the NSE, 357 stocks advanced, compared with 1,128 stocks declined, and 41 stocks remains unchanged.
Today, the majority of the sectors ended in the negative territory. Market performance was dragged by Nifty Pharma(-4.29%), PSU bank (-3.92%), and Realty (-2.25%). The Nifty IT (+2.22%) is the only indice that closed with gains on the sectoral front.
The MarketSmith IND 47 Index, our proprietary list of the top 47 stocks in technical chart and fundamental chart, managed to end at a 1.84% lower today.
On the other news, Lupin cracked 16.86% intraday touching 52 week low of INR 860.The Company’s formulation plant in Goa and Indore(Pithampur Unit II) has received a warning letter from USFDA. As per report, both plants account for nearly 60-70% pending ANDA filings.
Aviation stocks were under pressure as Jet Airways, SpiceJet, and InterGlobe Aviation fell 3-5% on the back of an increase in the crude oil prices. Brent crude futures were trading about 26 cents higher to USD 55.89 a barrel.
Today, both the Nifty and the Sensex observed a higher trading volume, compared to previous day’s trading session. Distribution count, which measure heavy volume selling in recent times, increased to three for the Nifty and one for the Sensex. The Indian market outlook continues to be in 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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