Today’s Action:
Benchmark indices started the week with a range-bound session, which ended with minor losses. Broader markets outperformed the headline indices.
Daily Market Review
The benchmark indices started the week on a quiet note in today’s trade. Volatility was low in today’s session, as the benchmark indices traded in a narrow range throughout the day. Even as both the Nifty and the Sensex traded in the positive territory for most part of the day, a minor sell-off in the final hour of trade resulted in both the headline indices closing for the day with a loss.
Today, the Nifty opened higher at 10,074.80, and reached an intraday high of 10,088.10. The index slipped in the final half-an-hour to hit an intraday low of 10,046.35, before finally settling at 10,057.40, down 0.09% from Friday’s closing price. Similarly, the BSE Sensex, after opening higher at 32,377.80, hit an intraday high of 32,396.14. The index slipped towards the close of the session, reaching an intraday low of 32,235.82, and closed for the day at 32,273.67, down 51.74 points or 0.16% from Friday’s close.
The market breadth, indicating the overall health of the market, was weighed towards the gainers in today’s session. On the NSE, 945 stocks advanced, compared with 582 stocks declining, and 60 stocks remaining unchanged.
The broader markets outperformed the headline indices as the Nifty Midcap and Smallcap indices advanced 1.12% and 1.52%, respectively.
Today, the MarketSmith India IND 47 Index, which lists the top 47 stocks in chart on fundamental characteristics, outperformed the headline indices with a gain of 1.35%.
On the sectoral front, the Nifty IT, Media, and Pharma indices were the only losers, dropping 0.74%, 0.49%, and 0.30%, respectively, in today’s session. On the gaining side, the Nifty Realty, PSU Bank, and Metal indices advanced the most, adding 1.55%, 1.53%, and 1.18%, respectively, by the close of trading.
In stock news, Bhushan Steel, against which the National Company Law Tribunal recently allowed insolvency proceedings to be initiated, has attracted interest from several investors worldwide. According to reports, Piramal-Bain (the partnership between Piramal Enterprises and Bain Capital Credit formed to invest in distressed debt), Los Angeles-based Oaktree Capital, Lone Star Funds, and AION Capital Partners are among the investors who have shown interest in acquiring a stake in the debt-ridden steelmaker.
In a welcome news to the domestic tire manufacturers, India may impose anti-dumping duty of up to USD 452.33 per ton on a certain variety of Chinese pneumatic radial tires. The Commerce Ministry’s investigation arm – Directorate General of Anti-dumping and Allied Duties (DGAD) – has concluded in its final findings that dumped imports of these tyres from China, has caused material financial difficulty for the domestic companies.
Looking to cement its dominance in the domestic market, InterGlobe Aviation-promoted IndiGo has submitted a proposal to the aviation regulator seeking to operate 170 flights a day to smaller towns. With its ATR-72 aircraft, the airline plans to connect 13 small towns as part of its regional operations. These small towns include Tirupati, Gwalior, Vijayawada, Bhopal, Bhuj, Shirdi, Allahabad, and Gorakhpur.
The distribution day count for the Sensex and the Nifty stands at 4.0 and 2.0, respectively. The indices are currently about 1% off their all-time highs, and 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.
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