Daily Big Picture – Bulls Take a Breather Ahead Of Expiry

Today’s Action:

Key indices end with small gains, Broader market underperforms

Daily Market Review:

After five straight record setting sessions, the Indian barometer loses the steam in today’s choppy session. Today’s session observed volatility ahead of the expiry of January’s futures and options. Trading volumes at the bourses was slightly lower as compared to yesterday’s spiked up volume.

At the end of the choppy session, the Nifty eked out small gains of 0.02% to close at 11,086, while the Sensex was slightly up 0.06% to end at 36,161.

Broader indices feel the heat as the Nifty Midcap and Small cap indices deflated 0.44% and 0.81%, respectively.

On the sector front, strong buying was witnessed in PSU bank, IT, and pharma stocks as the indices advanced 3.49%, 1.54%, and 0.61%, respectively. On the downside, metal, private banks, and auto declined the most.

Leading stocks underperformed the benchmark indices in today’s session. The MarketSmith India IND47 index, which is a list of top 47 stocks in chart and fundamental characteristics, dropped 1.09%.

The market breadth favors decliners with an advance decline ratio of 4:9. On NSE, 540 shares increased against a decline of 1245 shares. A total of 67 shares remain unchanged.

Distribution count, which measure heavy volume selling in recent times, remains unchanged. The current count for both the benchmark indices stands at one. With the key indices trading on higher ground coupled with low distribution day, the Indian market remains at Confirmed Uptrend.

In the stock news, L&T technology surged 20% to close at INR 1,211.90, after the Company reported revenue growth of 7.6% to INR 969.10 crore. Net profit rose at 2.84% to INR 126.50 crore.

Telecom player Idea was down 5.69% to INR 93.70. The Company reported net loss of INR 1,284 crore on consolidated basis. Total income was down at INR 6,551 crore (-24.75%).

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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