Daily Big Picture – Expiry Session Ends Well For Market

Today’s Action:

Major indices pocket decent gains; smallcap stocks underperform.

Daily Market Review:

Frontline indices bounced back in Thursday’s session, thanks to late buying at the bourses. Nifty rallied in the final hour of trade to close 0.5% higher, while the Sensex gained 0.6%.

Broader market indices underperformed the major composites, as the Nifty Midcap and Smallcap settled with gains of 0.4% and 0.02%, respectively.

On the sector front, most indices ended in positive territory. Nifty FMCG (+1.2%) and Private Bank (+1.1%) were the top gainers, whereas Nifty PSU Bank (-1.2%) and Realty (-0.7%) were the major losers.

In the global market, the 10-year U.S. Treasury yield scaled a four-year high of 3.03% on Wednesday, as concerns related to rising oil prices, inflationary pressures and growing supply of government debt played on investors’ minds. However, good corporate earnings helped Asian shares post gains.

Market breadth remained in favour of losers once again. Of the 1,547 stocks traded on the NSE, 840 declined, 646 advanced, and 61 remained unchanged.

Our proprietary list of leading stocks, the MarketSmith India IND 47 index continued to gain on par with the broader indices, advancing 0.51% in today’s session.

The major indices did well to recoup yesterday’s losses in today’s session. With no distribution day so far and both the indices trading comfortably above their key support levels of 50- and 200-DMAs, the market remains in a Confirmed Uptrend.

Current Outlook:

– Market environment conducive for 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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