Daily Big Picture – Key Indices Extend Slide Amidst Negative Global Cues

DailyBigPicture-MarketSmithIndia-WilliamOneilIndia

Today’s Action:

The benchmark indices opened flat with a positive bias in today’s trade; however, the market gradually lost ground, sliding into losses once the European markets opened in red.

 

Daily Market Review

After yesterday’s weak session, the key benchmark indices opened on a positive note in the morning; however, the indices failed to build on initial gains, and finally closed in red. The market sentiment was subdued due to lacklustre performance across the Asian markets, and the lack of any major domestic cues. The indices began to slide, once the European markets opened in red.

The Nifty opened higher today, at 9,520.20, and touched an intraday high of 9,522.50. However, the index slipped in the afternoon trade, reaching an intraday low of 9,474.35, before closing at 9,491.25, down 0.21% from yesterday’s closing price. The BSE Sensex, after opening higher at 30,988.87, hit an intraday high of 31,000.48. Tracking the Nifty, the Sensex slipped in the afternoon trade, reaching an intraday low of 30,798.70, before finally closing at 30,834.32, down 132.93 points or 0.40% from yesterday’s close.

The breadth, indicating the overall health of the market, was weak. A total of 1,277 stocks advanced on the BSE, while 1,330 stocks declined and 182 were unchanged.

Even as the headline indices closed lower, the broader markets posted gains for the day. The Nifty Midcap and the Smallcap indices added 0.39% and 0.45%, respectively, in today’s trading session.

The MarketSmith India IND 47 Index, which lists the top 47 stocks in chart on fundamental characteristics, gained 0.31% in today’s trading session.

Among the sectoral indices, gainers outnumbered losers, with seven sectors advancing and five sectors declining. Among the gainers, the Nifty Metal, Realty, and IT indices topped the charts, with gains of 1.62%, 0.79%, and 0.64%, respectively. On the downside, Nifty Energy, Nifty FMCG, and Nifty Media posted losses of 1.14%, 0.79%, and 0.76%, respectively.

In a move that can shake up the coal mining and power sectors in the country, NITI Aayog has proposed breaking up Coal India into seven firms. The government think-tank has also called for reforms in allocating coal blocks to independent companies with expertise in coal mining, as the government seeks to boost coal production locally. The state-owned Coal India is often criticized for its inefficiency; its output-per-man-shift is estimated at one-eighth of Peabody Energy, the largest coal miner.

In the banking sector, the country’s largest lender, SBI, has referred three of the 12 NPAs identified by the banking regulator, to the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code. Meanwhile, Fitch Ratings has maintained its negative outlook on Indian banks, and has affirmed the long-term issuer default ratings of eight Indian banks at BBB-. The rating agency also downgraded Bank of India’s viability rating from bb- to b+, reflecting the bank’s weaker intrinsic risk profile, compared with higher-rated peers.

Today, the Union cabinet will likely decide on the hike in the HRA and other allowances under the seventh pay commission, for nearly one crore central government employees and pensioners.

Trading volumes in both the Nifty and the Sensex were lower today, thereby escaping a distribution day. Today, both the Nifty and the Sensex shed a distribution day due to ageing, and the new distribution day count for both the indices stands at 2.0. The Indian market remains in a Confirmed Uptrend.

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.

To Read Detailed Reports including Stock Recommendations, Idea Lists, Evaluate Stocks etc. Subscribe to  MarketSmith India

Disclaimer: William O’Neil India Investment Adviser division, is one of the divisions of William O’Neil India Private Limited, which is a company incorporated under the Companies Act 1956. William O’Neil India Investment Adviser division is a registered investment advisor with the Securities and Exchange Board of India and through its online product, MarketSmith Indiaintends to provide quality equity research material and information to its customers. The investments discussed or recommended through MarketSmith India may not be suitable for all investors and hence, you must rely on your own examination and judgement of the stock and company before making investment decisions. Data provided through MarketSmith India is for information purposes only and should not be construed as an offer or solicitation of an offer to buy or sell any securities. Information and discussions made available through MarketSmith India contain forward looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. William O’Neil India Investment Adviser division or its employees / directors or any of its affiliates are not responsible for any losses that may arise to any person who has made investments based on the contents of this document. Past performance never guarantees future results. Investment in equities are subject to market risks and despite the best efforts to provide market leading research, William O’Neil India would like to exhort its users to acknowledge and fully understand the risks involved which might include but not limited to loss of both principal and income. Data and content provided through MarketSmith India is to be consumed only by the intended recipient and must not be redistributed any further.

Registered office address: William O’Neil India, Technomark Building, A-4, NGEF Ancillary Industrial Estate, Graphite India Road, Mahadevapura, Whitefield, Bangalore 560048, Phone: + 91 80 67453802, Fax: + 91 80 6745381, Website: http://www.williamoneil.com/india/, For investor queries:queries@marketsmithindia.com; For grievances: grievances@marketsmithindia.com; For compliance officer:compliance@marketsmithindia.com, Corporate Identity Number: U74999KA2012FTC066881, Investment Adviser SEBI Regn. Nos: INA200005125 valid till 11 July 2021.

Leave a Reply

Your email address will not be published. Required fields are marked *