Daily Big Picture – Key Composites Trade Flat; Broader Indices Extend All-time Highs

Today’s Action:

The major indices ended flat with the Nifty Midcap and Smallcap indices making a fresh all-time high.

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.

Daily Market Review

The benchmark indices ended flat in today’s session. Lack of domestic and global news kept investors on the sidelines. However, broader markets continued to grow higher with significant gains.

The Nifty closed at 9,316.85 to gain 0.03% marginally in today’s trading session. It opened at 9,337.35 points and traded in the range of 9,307.70-9,338.95.

The Sensex inched up 7.10 points and closed at 29,933.25, gaining 0.02% by the end of today’s trading session. It started the day off at the 29,977.50 mark and the trading range was observed between 29,911.44-30,017.82.

Poor trading activity was clearly evident from low volumes on both the frontline indices.

The Nifty Midcap and Smallcap indices continue to extend their all-time highs with gains of 0.51% and 0.58%, respectively, today.

The William O’Neil IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics gained 0.32% in today’s trading session.

Talking of the sectoral movements, the Nifty Metal, IT, and Energy indices had a good day with gains of 0.77%, 0.69%, and 0.60%, respectively. They were the top three gainers of the day. On the flipside, the Nifty PSU Bank, Media, and Bank indices were the top losers with losses of 1.28%, 0.63%, and 0.26%, respectively.

Lupin shares declined over 2% in today’s session after the Company received eight observations from the U.S. Food and Drug Administration on its Aurangabad facility. In a similar case, Aurobindo Pharma witnessed selling pressure after the US FDA made some observations and issued a Form 483 on its Hyderabad unit.

Other name that grabbed eyeballs today was S Chand & Co. The textbook publishing company debuted at the bourses today after a successful IPO process. In its public offering, the shares were oversubscribed about 59 times and was listed at a 3% premium.

Today’s small increments helped key indices in moving closer towards their milestone highs. The Sensex and the Nifty are about 0.8% and 0.7% below their all-time highs. However, the distribution day count still remains a concern at 4.0 and 3.0, respectively. The resilience shown by the key composites in the recent past affirms the market status of a Confirmed Uptrend.

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