Today’s Action:
General weakness was seen in the overall market today, with the Nifty closing below 9,400 levels. Leading the downtrend, the broader markets shed major gains today and are more than 5.8% off from their recent high.
Daily Market Review
The markets opened flat and remained dull throughout the trading session to close in red. The secondary barometer of the market’s health, the Nifty Smallcap and Midcap continue to be weak, closing in the red for the fifth consecutive day. They gave away major gains and continue to be under pressure.
Extending its losses from the morning session, the Nifty ended the day at 9,386.15, snapping 9,400 levels. With an opening at 9,445.05, the index traded in a wide range of 9,370 -9,448.05. It remains 1.54% off its all-time high.
Experiencing a sharp fall from the opening mark, the Sensex gave up 0.67% or 206 points by the close of the session. The index opened at 30,553.89 and closed at 30,365.25 and traded in a range of 30,316.92 – 30,610.64. It is currently 1.13% off from its recent high.
The sharp fall in the indices was marked with heavier volumes as compared to yesterday, marking a distribution day in both the indices.
The broader indices continue to be weak and remain under pressure. The Nifty Midcap and Smallcap corrected 1.67% and 2.58%, respectively.
The William O’Neil IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics lost 2.26% in today’s trading session, underperforming the Nifty’s performance.
Today’s fall was accompanied by weakness in majority of the sectors. The only sectors to close in positive today were Nifty Auto and IT, closing at a gain of 0.39% and 0.05%, respectively. The top three sectors to be beaten down are Nifty Pharma (-3.12%), Nifty Realty (-2.74%), and Nifty Media (-1.85%)
From an NPA of just over INR 2.34 lakh crore in June 2014, the bad loans of 26 public sector banks have expanded to more than INR 6 lakh crore as of December 2016. The RBI deputy governor, K.C. Chakrabarty, in fact, stated that the actual NPA figures could be approximately 20 lakh crore, much higher than the official figures. The RBI announced its plans to expand the scope and size of the Oversight Committee (OC) and is likely to modify the guidelines on restructuring loans so as to resolve the large stressed assets in the banking system. It marks the beginning of RBI’s step towards implementing Banking Regulation (Amendment) Ordinance, 2017.
A negative outlook for the pharma sector, along with a poor earnings show by a few pharma firms, pulled most of the pharma stocks down today.
The Indian market outlook stays at Confirmed Uptrend as the Nifty and the Sensex are trading near their all-time highs. One distribution day was added to the Nifty and the Sensex each. One Distribution day aged off for the Sensex. The revised count stands at 2.0 and 4.0, for the Nifty and the Sensex, respectively.
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.