Today’s Action:
The Nifty and the Sensex elates investors after touching new highs.
Daily Market Review:
Benchmark indices set the Dalal Street in euphoria of success, which is fueled by an increasing investors confidence in the Indian market. Today, both the indices scaled to fresh highs; thus, setting a grand prelude for this week. The rally in Midcap and Smallcap indices further induces us to think that 2018 might repeat 2017 or may be better. However, it is too early to comment on this year. Market is at record highs, and investors should not hesitate in buying stocks, which are fundamentally and technically strong.
Today, we observed both the Nifty and the Sensex setting new bars as they touched an intraday all-time high of 10,631.20 and 34,385.67, respectively. The Nifty gained a 0.61% or 64.75 points, while the Sensex gained a 0.58% or 198.94 points in today’s trading session.
A glance at the Sectoral chart would give us a sense of excitement; and apart from Nifty PSU Bank, all the sectors ended in the positive territory. The top-three sectors to lead the euphoria in the market were Nifty Pharma (1.41%), IT (1.23%), and Metal (1.21%).
The strong Uptrend in the Midcap and Small cap indices have pushed them at an arm’s length to their all-time high.
The market breadth, which indicates the overall health of the market continues to be in favor of gainers. Today on the NSE, 936 stocks advanced and 568 stocks declined. A total of 25 stocks remain unchanged.
Our proprietary list MarketSmith India IND 47 outperformed the Nifty, as it gained a 1.19% today.
As the Crude oil is on a rising spree, it is important to remain cautious while investing in aviation industry. As the crude oil is their main cost, and the margins might be impacted if they are not able to pass on this to consumers therefore stock price might be negatively impacted. On the contrary, companies such as ONGC, Reliance Industries, and Chennai petroleum are expected to benefit from the crude rise.
From the earnings corner, Prakash Industries Q3 FY 2018 profit grew to INR 150 crore from INR 62 crore in Q3 FY 2017, on account of higher steel and ferro alloy prices. The stock was in positive momentum, for the past few days, and today it surged a 6.80% on account of above estimates earnings declaration.
The distribution day count, for the Sensex and Nifty, remains at three and four, respectively, while the Indian market condition remains at 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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