Daily Big Picture – Bulls Take The Centre Stage; Nifty Ends At Record High

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Today’s Action:

Benchmark indices revert back to a winning streak, as both the indices make fresh highs in today’s trading session. The market observed a spellbound trading session with PSU banks extending the rally.

Daily Market Review:

Key Indices started the day higher after tracking positive cues from its Asian peers. The markets have made an all time high again in today’s trading session, however, the broader indices observed a subdued performance today compared to the major indices.

The Nifty started the day on a higher note at 10,390.35 and hit an intraday all time high of 10,451.65. It fell down to 10,383.05 before finally ending the day at 10,440.50 with gains of 1.02%. The Sensex also scaled new highs in today’s trading session. After starting the day at 33,344.23 it advanced till 33,651.52, hence making a new all time high. However it could not hold on to that level and fell as low as 33,340.62 intraday. The index finally settled the day with a gain of 1.17% at 33,600.27.

Broader markets underperformed the bourses as the Nifty Midcap and Small cap indices gained 0.55% and 0.57% respectively.

The market breadth, which indicates the overall health of the market was in favour of the gainers. On the NSE, 836 stocks advanced compared with 711 stocks declining, and 41 stocks remaining unchanged.

Sector-wise, Nifty PSU Bank (+3.64%), Reality (+2.59%), and Financial service (+1.97%) outperformed the overall market, whereas, Nifty Media (-0.50%), Pharma (-0.46%), and IT (-0.19%) were under pressure and ended the day on a lower note.

The MarketSmith IND 47 Index, our proprietary lists of the top 47 stocks in technical chart and fundamental characteristics, gained 0.28% today.

The domestic tractor sales data for the month of October was released today; domestic tractor sales increased 12.9% in the past month as compared with the similar period in the last year. Escorts Ltd outperformed the industry with tractor sales growth of 13.8%.

Adani transmission acquired assets worth INR 1,000 crore from Western Region Strengthening System Schemes (WRSSS).This acquisition has increased the capacity of the operational transmission lines by 3,063 circuit kilometres.

Shares of Dredging corporation India hit an upper circuit in today’s trading session as the cabinet approved the sale of the government’s entire holding in the Company to the private players.

Both the Sensex and the Nifty observed a higher trading volume today compared to yesterday’s trading session. Today Sensex dropped one distribution day due to reversal and thus the total distribution day count stands at 2 for the Nifty while none 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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