Today’s Action:
Benchmark indices take a U-turn from Friday’s gain. Distribution count remains same.
Daily Market Review:
The Indian market lagged amid a sell-off in banking, auto and media stocks today.
Tracking weak global cues, both the benchmark indices opened lower and deepened their losses as selling pressure mounted in the final hour of the trade.
In the end, both the Nifty and the Sensex logged a loss of 0.6% each. Nifty breached its crucial support of 10,800 levels. However, volume came at lower levels and hence both key indices escaped adding a distribution day.
Broader market followed suit as the Nifty Midcap and Smallcap also dropped 0.5% and 0.6%, respectively.
The overall market breadth was bearish as losers outnumbered gainers by a huge margin. Out of 2,076 stocks traded on the NSE, 485 advanced, 1,252 declined and 339 remained unchanged.
On the sectoral front, there was a sea of red as most indices except Nifty IT (+0.7%) ended lower. Among all, Nifty PSU Bank, Auto, and Media were the worst hit, as those indices lost 2.2%, 1.6% and 1.4%, respectively.
MarketSmith India IND 47 index, our proprietary list of top 47 stocks in chart and fundamental characteristics, lost 0.8%.
Talking about market direction, weakness in the overall market continues to prevail. The distribution day count remains unchanged at three on the Nifty and four on the Sensex. With frontline indices continuing to trade in a broader range, the market condition remains unchanged at Uptrend Under Pressure.
For the Nifty, the previous high of 10,929.20 serves as a crucial resistance zone while on the downside, the index seems to have strong support at its 50-DMA. The index closed 0.8% above its 50-day line.
Current Outlook:
– Be cautious with new purchases.
– Form a defensive game plan for your portfolio.
– Stay disciplined and exercise sound sell rules.
To Read Detailed Reports including Stock Recommendations, Idea Lists, Evaluate Stocks etc. Subscribe to MarketSmith India.