Major indices extend gains; broader market outperforms.
Daily Market Review:
“The only thing that is constant is change.”
After going through a rough patch in recent times, the Indian stock market closed in green for the second straight session.
With global markets rebounding sharply on the back of fading trade war concerns, India’s key indices managed to bring home modest gains.
In a range-bound session, the Nifty and the Sensex pocketed gains of 0.5% and 0.3%, respectively.
The Indian government’s decision to cut down its total borrowing to Rs 2.88 lakh crore in H1 FY 2019 (23% lower compared with H1 FY 2018) was received well by market participants.
Broader indices hogged the limelight with Nifty Midcap and Smallcap accumulating gains of 1.3% and 1.7%, respectively.
In a rare occurrence, all sectoral indices ended in positive territory. The top gainers were Nifty PSU Bank (+2.98%), Metal (+1.83%), and Financial Service (+0.78%).
Our proprietary list of leading stocks, the MarketSmith India IND 47 index advanced 0.9% in today’s session.
The advance-decline ratio remained in favor of gainers today. Of the 1,556 stocks traded on the NSE, 1,142 gained, 372 declined, and 42 remained unchanged.
Talking about market direction, the Indian market continues to be in a Downtrend. If key indices manage to stay above the lows of March 23 in tomorrow’s session, we will move the market to a Rally Attempt.
Besides closing in green, the Nifty also managed to retake its 200-day line, which it had breached recently. It would be interesting to see if the index manages to stay above its 200-DMA in the coming sessions.
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