Today’s Action:
The key indices continue their winning streak with significant gains. Broader markets outperform frontline composites.
Daily Market Review
The frontline indices recorded new closing all-time highs for the third consecutive session, today. After opening significantly higher, the indices witnessed choppy movement for most of today’s trading. However, the key index clung on to the gains and closed near the day’s high.
The Nifty opened above the 9,800 mark. The index traded in a range of 9,788.25 – 9,822.85, before finally settling at 9,816.10, up 0.31% from yesterday’s closing price. The BSE Sensex, after opening higher at 31,813.24, touched an intraday high of 31,864.24. However, the index lost momentum in mid- session, and hit an intraday low of 31,734.32. The Sensex finally settled at 31,804.82, up 0.18% from the previous close.
The overall market breadth tilted slightly towards the positive quadrant, with 1,475 stocks gaining on the BSE, compared with 1,204 stocks declining, and 157 stocks remaining unchanged.
Broader markets bounced back sharply from yesterday’s losses. The Nifty Midcap and Smallcap indices grew 0.69% and 0.95%, respectively, in today’s trading.
The MarketSmith India IND 47 Index, which lists the top 47 stocks in chart on fundamental characteristics, gained 0.8% in today’s trading session.
The sectoral chart displayed a positive picture by the end of today’s trading, as all composites, barring the Nifty IT (-0.27%) index, closed with gains. The top three sectors that led today’s rally were the Nifty PSU Bank, Energy and Media indices with increments of 1.34%, 1.30%, and 0.65%, respectively.
In today’s stock talk, IndusInd Bank was in the spotlight from the beginning of the session after it delivered strong Q1 FY 2018 results. Reliance Industries, hit a fresh nine-year high after it announced new tariff plans for its telecom customers on Tuesday.
Shares of Biocon increased over 8.5%, intraday, as investors took an optimistic view on the company ahead of its meeting with U.S. drug regulators to discuss breast cancer drug filing. More news from the same industry; Vista Pharmaceuticals witnessed distribution after the U.S. health regulator issued a warning letter to the company’s unit in Telangana.
Today, the benchmark indices observed slightly lower volumes compared to yesterday’s session. The key indices dropped one distribution day from their tally due to ageing. The new distribution day count for the indices stands at 1.0, and the Indian market firmly 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
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