Daily Big Picture – Investors Remain Watchful Ahead of RBI’s Policy

MarketSmith India_William Oneil India

Today’s Action:

Markets displayed slight recovery after heavy correction over the last few trading session. Both the indices started positively today and were able to hold their momentum until the end of the trading session.

Daily Market Review:

The benchmark indices started the holiday truncated week on a bullish note as both the Nifty and the Sensex posted healthy gains amidst anticipation about RBI’s monetary policy decision, which is to be announced tomorrow. Broader and sectoral indices also performed in line with the frontline indices.

The Nifty started the day at 9,893.30 and gained 0.72% today. It traded in a range bound manner within 9,831.05-9,895.40. The BSE sensex gained over 200 points or 0.68% today. It opened at 31,537.81 and traded in the range of 31,440.48-31,615.28.

The market breadth, indicating the overall health of the market was in favour of gainers today. On the NSE, 756 stocks advanced, compared with 657 stocks declining and 62 stocks remaining unchanged.

The broader markets extended their gains in today’s session. The Nifty Midcap and Smallcap both added 0.51% and 0.61%, respectively, today.

The MarketSmith India IND 47 Index, which lists the top 47 stocks in chart on fundamental characteristics, gained 1.92% today.

Barring Nifty PSU Bank, all sectors emerged as a winner today. The top-three outperformers were Nifty Energy, Metal, and FMCG with increments of 1.35%, 1.22%, and 1.09%, respectively. Nifty PSU Bank lost 0.62% today.

Tomorrow, the monetary policy committee will deliver its interest rate verdict amidst weak macro indicators. It is expected that the RBI will maintain its status quo alongside a downward revision to growth forecast.

In stock news, SBI cuts one-year fixed deposit rates upto INR 1 crore to 6.50% and base rates to 8.95%, ahead of RBI policy. Revision in rates is effective from October 01, 2017.

Reliance industries joins the state-run refineries in importing crude oil from U.S. This is the first time that Reliance Industries is purchasing crude oil from USA drawn by the lower price for U.S oil versus global benchmarks.

The investors remained precautioned on the RBI’s MPC decision tomorrow, as evident by lower trading volume in both indices. The distribution day count remains at four, for the Nifty, and three for the Sensex. The market status remain in “Uptrend Under Pressure.”

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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