Today’s Action:
Benchmark indices make fresh highs on a closing basis.
Daily Market Review:
Today markets observed a volatile trading session; and thus, hinting at more of trading than investing. Amidst this topsy-turvy movement, markets managed to reach fresh highs today. However, Midcap and Smallcap indices observed some sell-off, as traders resort to booking profit.
The Nifty gained 0.13% today to close at 10,637, while the Sensex added a 0.26% to its rally to close at 34,443.19, both the indices made an all-time high today on a closing basis.
Today, the Nifty realty surged more than 2% in an anticipation that the budget will reflect the government’s increased focus on the infrastructural development countrywide. Other sectors that are amused today were: Energy (0.59%) and FMCG (0.47%). Pharma sector, which has been in talks recently, lost a 0.67% today. The other losers were Nifty Media (-1.23%) and Auto (-0.27%).
The Midcap and Smallcap indices observed a halt in their rally today, as they lost 0.12% and 0.06%, respectively.
The market breadth, which indicates the overall health of the market continues to be in favor of losers. Today on the NSE, 637 stocks advanced and 940 stocks declined. A total of 25 stocks remain unchanged.
Our proprietary list MarketSmith India IND 47 outperformed the Nifty, and gained a 0.29% today.
Apollo Tires today announced about its plan to invest in its seventh facility in Andhra Pradesh, a sum amounting to INR 1,800 crores. This capacity expansion will help the Company meet a robust demand for tires from the passenger vehicle segment. Thus, Apollo tyre could be a good bet going forward, on the back of a strong revenue growth.
India proposed to impose a 70% provisional safeguard duty on imported solar cells from China, to protect the domestic industries. Thus, the solar cells manufacturer is expected to get a great boost from this decision while Websol Energy Systems is in a continuous uptrend since the last few trading sessions. The stock gained 10.55% today.
Arcelor Mittal and SAIL might bid jointly to take over the distressed Bhushan steels. SAIL, though lacks funds, has a great expertise in handling domestic operations. On the contrary, Arcelor has funds to make this strategic alliance a win-win situation for both the Companies.
Today, the Sensex dropped one distribution day, due to ageing; and hence, the count for the Sensex and the Nifty remains at two 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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