Daily Big Picture – Bulls Take Control on D-Street; Sensex Records Fresh All-Time Closing High

 

MarketSmith India_William Oneil IndiaToday’s Action:

Continuing with the momentum from yesterday, the benchmark indices traded in green all through the day, and approached their all-time highs. The indices ended on a firm footing, with the Sensex at a new all-time closing high and the Nifty less than a point below its own all-time closing high.

Daily Market Review

Despite the weakness seen across the Asian markets, the benchmark indices opened with a positive bias in today’s trade. The indices built on their morning gains, and came within touching distance of their all-time highs. By the end of today’s session, the Sensex ended at its all-time high closing price, while the Nifty ended less than a point shy of its all-time high on a closing basis.

The Nifty opened higher today at 9,653.60. After touching an intraday low of 9,639.95, the index advanced as the day progressed, touching an intraday high of 9,700.70 before finally settling at 9,674.55, up 0.38% from yesterday’s closing price. The BSE Sensex, after opening higher at 31,298.42, touched an intraday low of 31,264.86. However, the index picked up steam, reaching an intraday high of 31,460.70. The Sensex finally settled at 31,369.34, up 123.78 points or 0.40% from yesterday’s close.

The breadth, indicating the overall health of the market, was tilted towards the gainers, with 1,537 stocks gaining on the BSE, compared with 1,171 stocks declining, and 135 stocks remaining unchanged.

The broader markets also made gains in today’s session. The Nifty Midcap and Smallcap indices added 0.21% and 0.41%, respectively, in today’s trading session.

The MarketSmith India IND 47 Index, which lists the top 47 stocks in chart on fundamental characteristics, gained 0.39% in today’s trading session.

Among the sectoral indices, barring the Nifty Energy, IT, and Media indices, which lost 0.30%, 0.12%, and 0.07%, respectively, all indices made gains. The Nifty PSU Bank, Realty, and FMCG indices led the gainers, advancing 2.35%, 1.76%, and 0.85%, respectively.

In a development that should further support real estate and related sectors, the Pradhan Mantri Awas Yojana (PMAY) guidelines have been amended to include any adult earning member, irrespective of the person’s marital status, as a separate householder who does not own a pucca (an all-weather dwelling unit) house. Earlier, the benefit of the PMAY scheme was limited to a household consisting of husband, wife, and unmarried sons and/or daughters who did not own a pucca house. Further, new areas such as Noida and Lucknow have been notified by the government as eligible for subsidy under the scheme.

According to reports, the Department of Investment and Public Asset Management has issued a Cabinet note on the merger of HPCL with ONGC. An in-principle approval will be taken for selling the government’s 51% stake in HPCL to ONGC, along with the transfer of HPCL’s management control to the oil and gas explorer. A core group of secretaries had approved the divestment in HPCL on June 20.

The U.S. has lifted its electronic devices ban on Qatar Airways flights, becoming the fourth airline on whom restrictions have been eased by the U.S. Curbs on Emirates, Etihad Airways, and Turkish Airlines had been lifted earlier this week. In May, the U.S. had banned large electronic devices such as laptops and cameras as cabin baggage on U.S.-bound planes from ten foreign destinations, mostly in Muslim-majority countries. The ban gave a fillip to the Indian carriers, Jet Airways and Air India, which operate flights to the U.S.

Trading volume in the Nifty and the Sensex were higher today, compared with yesterday’s session. 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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