Today’s Action:
The key indices held onto all-time highs amid profit-booking in the second half of the session. Broader indices witnessed selling pressure.
Daily Market Review
The benchmark equity indices extended their all-time highs led by a rally in technology and auto stocks. The Sensex and the Nifty rose significantly higher, recording a new all-time high. However, in the second half of the session, indices pared solid gains to finally end marginally higher. A good start to the upcoming Q1 FY 2018 earnings season will be crucial for the key indices to maintain these levels.
The Nifty opened higher today at 9,797.80. After touching an all-time high of 9,829.45, the index trended downwards to touch a low of 9,779.60, before finally settling at 9,786.05, up 0.15% from yesterday’s closing price. The BSE Sensex, after opening higher at 31,791.61, touched an all-time high of 31,882.22. However, the index lost momentum in the second half of the session, and hit an intraday low of 31,723.99. The Sensex finally settled at 31,747.09, up 31 points or 0.10% from the previous close.
The market breadth, indicating the overall health of the market, took a sudden turn from positive to negative, with 1,160 stocks gaining on the BSE, compared with 1,567 stocks declining, and 151 stocks remaining unchanged.
In contrast to their frontline peers, broader indices came under the grip of bears, as the Nifty Midcap and Smallcap indices posted significant losses of 0.87% and 0.83%, respectively.
The MarketSmith India IND 47 Index, which lists the top 47 stocks in chart on fundamental characteristics, declined marginally by 0.13% in today’s trading session.
On the sectoral front, the Nifty Auto, IT, and Energy indices were the only three composites that ended in green, with gains of 0.75%, 0.67%, and 0.24%, respectively. Rest all sectoral indices posted losses with the Nifty Realty (-1.53%), PSU Bank (-1.26%), and Pharma (-0.84%) declining the most.
IT stocks are up in today’s trade, continuing their momentum from yesterday’s session. Yesterday, the markets regulator had placed curbs on FIIs from issuing participatory notes, which has led to short covering in the IT scrips. Further, optimism relating to the earnings announcement by TCS and Infosys, scheduled later during the week, boosted the IT shares.
IndusInd Bank reported its Q1 FY 2018 results today, beating the consensus estimates comfortably. The private sector bank delivered a net profit growth of 27%, y/y. However, on the flip side, the bank’s gross non-performing assets expanded to 1.09% in this quarter, compared to 0.93% in the previous quarter.
After witnessing muted volume in yesterday’s glitch stricken session, the Nifty recorded healthy volume today. However, low volume was observed on the Sensex. The distribution day count for both the indices currently stands at 2.0, and 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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