Daily Big Picture – Key indices Pare Early Gains to End Flat


Today’s Action:

The major indices maintain a positive stance despite a flat ending. The Nifty Midcap index follows key composites, while the Smallcap index posts significant loss.

Daily Market Review

In today’s session, the benchmark indices recorded new all-time highs for the second day in a row. The Sensex and the Nifty started off at fresh highs as the bulls took control of the markets in early trading hours. However, towards the end of trading, key composites gave up a major part of the intraday gains, likely due to profit booking.

The Nifty recorded another fresh 52-week high of 9,422.40. It gained 0.16% in today’s trading session after opening at 9,448.60 points and traded in the range of 9,411.30 – 9,450.65.

After starting at a fresh high of 30,309.71, the Sensex traded in a range of 30,207.11 – 30,366.43. However, distribution in the second half of the session dragged the index to 30,250.98. It closed the day on a flat note at +0.01%.

Mixed trading activity was observed on the key indices. The Nifty observed high trading volume, while the Sensex witnessed lower volume than the previous session.

The broader markets looked weak today as the Nifty Midcap index ended flat at +0.2%, while the Nifty Smallcap index declined 0.52%.

The William O’Neil IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics, drifted 0.21% lower in today’s trading session.

On the sector front, most of the sectoral composites closed in the green territory. The top three gainers among them were Nifty Media, Auto, and PSU Bank indices with increments of 3.44%, 1.04%, and 1.03%, respectively. The Nifty Energy and Pvt Bank indices were at the bottom of the chart with losses of 0.67% and 0.22%, respectively.

From the earnings corner, HCL Technologies reported consensus beating Q4 FY 2017 results earlier today. The IT biggie reported a 13.7%, y/y, growth in its revenues and an EBIT margin of 20%. Further, its net profit increased 20.8%, y/y. The Company’s board declared an interim bonus of INR 6 per share.

The distribution day count for the Sensex and the Nifty remains at 4.0 and 3.0, respectively. As the markets grow stronger with the passage of every day, the concern surrounding high distribution day count is diminishing. Equity markets firmly hold on to the status of 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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