Today’s Action:
Frontline indices get off to a solid start; broader market outperforms.
Daily Market Review:
The Indian key composites pocketed decent gains in today’s session, brushing aside weak global cues.
After trading mildly higher for the most part of the day, a late buying surge sent the Nifty and the Sensex higher by 0.7% and 0.6%, respectively, mainly driven by strength in FMCG stocks. UPL was the top gainer on the Nifty with a gain of 15.5%.
The domestic market sentiment received a boost after GST Council decided to slash tax rates by 10% on a wide range of goods. Further, the decision to allow small business enterprises, whose turnover is less than Rs 5 crore, to file GST returns once in three months was warmly welcomed by the market.
As a result, the 30-stock composite, Sensex scaled an all-time high of 36749.69 today. The Nifty failed to clear its previous high of 11,171.55 and settled 0.8% below it.
In the broader market, the Nifty Midcap and Smallcap carried on from where they left off on Friday, accumulating impressive gains of 1.1% and 0.7%, respectively.
The market breadth was strong as gainers outnumbered losers by a margin of 13-8 on the NSE.
On the sectoral front, almost all indices closed in the green barring Nifty IT (-0.1%). Among all, Nifty FMCG, PSU Bank, and Realty rallied the most with gains of 2.5%, 2.4%, and 1.7%, respectively.
Talking about leading stocks, MarketSmith India’s IND 47 index, our proprietary list of top 47 stocks in chart and fundamental characteristics, gained 0.7%.
Coming to the overall market direction, the Nifty and the Sensex still have a high distribution day count of six and five, respectively. That said, the Sensex touched a new high today while the Nifty is within touching distance of making an all-time high. Hence, the market direction remains unchanged at a Confirmed Uptrend. However, the market remains divergent with the Nifty Midcap and Smallcap currently in a Rally Attempt.
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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