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

MarketSmithIndia-WilliamOneilIndia

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.

For more updates, 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 *