Daily Big Picture – Benchmark Indices Observed a Sombre Session Today

Today’s Action:

Key Indices observed a subdued performance today. However, the broader indices outperformed the frontline indices, while the Nifty Realty stole the show.

Daily Market Review:

The Indian market frittered away from the promising start and remained in the negative territory throughout the session. The investors remained shy to take new positions in the stock, before the earnings release.

The Nifty started the day at 10,364.90 and lost 0.27% in today’s trading session. After trading in the range of 10,323.95-10,367.70 it ended the day at 10,335.30. The BSE Sensex also observed a subdued performance today, as it opened at 33,254.93 and traded in between 33,164.28 and 33,294.30 to finally settle at 33,213.13 with a loss of 0.16%. Both indices observed a lower trading volume today, compared to yesterday’s trading session.

The broader indices bucked the trend , as the Nifty Midcap and Small cap gains were 0.12% and 0.49%, respectively.

The market breadth, which indicates the overall health of the market was in favor of gainers. On the NSE, 780 stocks advanced, compared with 760 stocks declining and 50 stocks remaining unchanged.

Talking about the sector performance, stocks from Realty, Private Banks, and FMCG continue to show great demand as the sector advanced 2.89%, 0.67%, and 0.20%, respectively. On the flip side, Nifty PSU Bank, Metal, and Auto sector underperformed the benchmark indices by deflating 2.14%, 1.71%, and 0.49%, respectively.

The MarketSmith IND 47 Index, which lists the top 47 stocks in technical chart and fundamental characteristics, gained 0.34% today.

Vedanta’s executive chairman announced about their capital expenditure plans to invest USD 9B in India. The investment will help the company in expanding its hydrocarbons and metals business. This will help the Company in meeting the country’s commodities demand, going forward, and increase its sales revenue.

Escorts Ltd announced its Q2 FY 2018 earnings today, the Company reported solid numbers as the standalone net profit grew about 150%, y/y, due to increase in sales.

The Nifty and the Sensex dropped one distribution day today, due to ageing. Thus, the total distribution day count stands at two, for the Nifty, while one for the Sensex. The Indian market remains 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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