Daily Big Picture – Key Indices Extend Gains; FMCG, Financials Lead Rally

MarketSmith India_William Oneil IndiaToday’s Action:

The Nifty and the Sensex post gains of over 1% each. Broader Indices outperform key composites.

Daily Market Review

In today’s trading session, the benchmark indices continued their recovery after a significant correction in the last week. Extending gains from the previous session, the Nifty and the Sensex reclaimed 9,850 and 31,500 levels, respectively. After trading flat in the first half, the benchmark indices trended upwards to close at the day’s high. Market displayed a positive momentum, as geopolitical tensions relating to the US-North Korea tussle eased.

Today, the Nifty opened higher at 9,819.00. After touching an intraday low of 9,774.45, the index trended higher and topped out at 9,902.75 before finally settling at 9,794.15, up 1.05% from the last closing price. Similarly, the BSE Sensex, opened at 31,566.24, and went on to hit an intraday low of 31,402.96. The index picked up steam in the second half, reaching the day’s high of 31,805.10. The Sensex finally settled at 31,770.89, up 322 points or 1.02% from the previous close.

The market breadth, indicating the overall health of the market, was tilted towards the gainers in today’s session. On the NSE, 1,027 stocks advanced, compared with 444 stocks declining, and 60 stocks remaining unchanged.

The broader markets witnessed solid demand as the Midcap and Smallcap were back in favour. The Nifty Midcap and Smallcap indices outperformed key indices with increments of 1.32% and 1.67%, respectively.

Similarly, the MarketSmith India IND 47 Index, which lists the top 47 stocks in chart on fundamental characteristics, advanced 1.51%, in today’s session.

On the sectoral front, barring the Nifty Energy index, which declined 0.22%, all the other sectors ended with significant gains. The Nifty FMCG, PSU Bank, and Metal indices remained on top of the gainers list with profits of 2.51%, 2.10% and 1.72%, respectively.

Market regulator Sebi has relaxed norms for the purchase of listed distressed companies, in an announcement that was made earlier today. Sebi has eased the norms for restructuring in troubled companies that are listed on exchanges subject to certain conditions. This move comes with the government and the RBI’s efforts to tackle the bad loan menace.

In other news, the Income Tax department is preparing a new list of penny stocks based on the clues from an earlier investigation into market operators who facilitate money laundering and tax evasion through listed companies. Many of these penny stocks are fraudulent in nature and are listed solely to evade taxes or launder unaccounted income.

Trading volume on the key indices picked up in comparison to Monday’s session, indicating healthy accumulation. The distribution count for the Nifty and the Sensex remains 5.0 and 6.0, respectively. Currently, the indices are about 2.5% away from their all-time highs. The Indian market status is in Uptrend Under Pressure.

Current Outlook:

– Be cautious with any new purchases.

– Make a defensive game plan for your portfolio.

– Stay disciplined and exercise sound sell rules.

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