Daily Big Picture – Key composites scale new highs; Nifty Pharma outshines the markets

MarketSmithIndia-WilliamOneilIndia

Today’s Action:

The Nifty and the Sensex ended the session closing at a record high with the Sensex making another fresh high of 31,220.38 during the day. The Nifty Midcap outperformed the markets.

Daily Market Review

The key benchmarks opened the day on a negative note, after rising for three consecutive days in the past, on account of profit booking. However, recouping losses from the opening, the markets managed to end the day on a positive note.

Opening below 9,600 levels, at 9,590.65, the Nifty ended the day at a gain of 0.20% or 20 points. Closing at a record high of 9,624.55, the index stands 0.14% off from its all-time high. The range observed for the day was 9,581.20 – 9,635.30.

After opening at an all-time high of 31,111.73, the Sensex continued to make another fresh high of 31,220.38 during the day. The highs and lows observed for the day were 31,064.04 – 31,220.38. The index closed at a 31,159.40, gaining 0.16% or 50 points.

Low volumes were observed on both the indices.

Focusing on the broader markets, the Nifty Midcap outperformed the markets today, gaining 1.08% on a closing basis. It currently stands 5.94% away from its all-time high. The Nifty Smallcap ended the day with a nearly flat closing at -0.06%. With the Nifty Smallcap trading 7.4% off its high, both the indices remain under pressure.

The MarketSmith India IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics, closed flat at a minimal gain of 0.02% in today’s trading session, underperforming the benchmark.

Today’s up move was augmented by nearly all the sectors. After continued weakness observed in the pharma sector, the Nifty Pharma was the top gainer in today’s session, gaining 2.65%. The other top two performers of the day were Nifty PSU Bank and Realty, gaining 1.77% and 1.02%, respectively. On the contrary, the sector to close in red after gaining massively in the recent sessions was Nifty FMCG, losing 0.63%.

According to Central Electricity Authority, the demand-supply gap fell to an all-time low of 0.7% in 2016-2017. However, the statistic does not fully account the supply-gap from load shedding.

Several top mutual funds like Reliance Mutual Fund, HDFC Mutual Fund, Birla Sun Life Mutual, have significant exposure in the recently downgraded perpetual bond (AT-1) of IDBI Bank.

Automaker Mahindra & Mahindra Ltd reported a 20% y/y increase in net profits, beating the consensus estimates. In line with trend of improving quarterly results of metal companies, Hindalco today reported a 26% y/y increase in net profits, beating consensus estimates.

The Indian market outlook stays at a Confirmed Uptrend as the Nifty and the Sensex are trading at all-time highs. The distribution day count stands at 1.0 and 4.0, for the Nifty and the Sensex, respectively.

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