Today’s Action:
Indian markets increment amidst uncertainty.
Daily Market Review:
A cautious approach adopted by the investors kept indices volatile today. Due to ongoing earnings season, these kind of volatility cannot be denied. The substantial rise in the markets worldwide might be the another reason for the investors to exercise caution and take more of a trading approach then investing approach. However, this is the characteristics of a bull market, which starts with low participation but ends with humongous participation. The distribution day count, a leading indicator to identify the market trend suggests that Indian markets are driven by bulls and if sound investment principles are followed, it will yield better results.
Today, the Nifty and the Sensex opened positively and traded flat during the initial few hours. However, there was some buying as the day progressed, which helped the indices extend their gains. The Nifty and the Sensex ended with gains of 0.18% and 0.20%, respectively.
Midcap and Smallcap stocks performed well today, which kept people excited as they were subdued in the last two trading sessions. Midcap index gained 0.26% while Smallcap index advanced 0.38% today.
Apart from energy and metal stocks that lost 0.38% and 0.14%, respectively, all the sectors performed well today. The most outstanding sector was Nifty Realty with gains of 2%, infact realty will be a bet among the investors before the budget due to expected government focus on infrastructure development.
IndusInd Bank reported its Q3 FY 2018 earnings today; the bank posted a 25% growth in net profit in line with street estimates. However, net interest income came at below street estimate.
Stocks of Cochin Shipyard surged 4.48% today on NSE on the news that it signed MOU with Mumbai port trust to undertake the activities of repairing damaged commercial as well as defence ships. Due to the agreement, investors see a chance of improvement in revenue going forward.
The market breadth, which indicates the overall health of the market continues to be in favor of losers. Today on the NSE, 973 stocks advanced and 814 stocks declined. A total of 82 stocks remain unchanged.
Our proprietary list MarketSmith India IND 47 underperformed the Nifty, it lost 0.14% today.
There is no change in the distribution day count and thus the count for the Sensex and the Nifty remains at one and three, 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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