Today’s Action:
Major composites fall-off day’s highs amid profit booking in the afternoon session.
Daily Market Review:
The Indian stock market left investors high and dry with a stalling session. After a gap-up opening that saw Nifty rising 0.6%, the market failed to capitalize and succumbed to profit-booking in the second half of the session.
Eventually, Nifty and Sensex settled with gains of 0.3% and 0.4%, respectively.
The market saw an uplift today on account of financial stocks that contributed to almost half of the gains.
Broader indices also gave away most of their early gains and ended near the day’s low. The Nifty Midcap and Smallcap posted small gains of 0.4% and 0.1%, respectively.
It was a mixed day as far as sectoral indices are concerned. The Nifty Realty and Financial Services indices gained 0.8% and 0.7%, respectively. On the losing end, the media and pharma indices declined 0.7% and 0.6%, respectively.
Our proprietary list of leading stocks, the MarketSmith India IND 47 index, outperformed the overall market, thanks to a handsome gain of 1%.
The advance-decline ratio was slightly tilted towards losers. Of the 1,566 stocks traded on NSE, 719 gained, 767 declined, and 80 remained unchanged.
On the political front, logjam in the Parliament continued for 12th straight day due to protests from opposition parties. Market participants continue to keep a close eye on developments relating to the Telugu Desam Party after it moved a no-confidence motion against the NDA government.
Global investors remain cautious ahead of the U.S. Federal Reserve meeting later today. Market participants are expecting the Fed to raise interest rates in today’s meeting.
The Indian market outlook remains unchanged at a Downtrend. If key indices manage to hold above Tuesday’s low for two more sessions, we will consider moving the market to a Rally Attempt.
On the flip side, the 10,000 level on the Nifty continues to act as a crucial support for the Indian market. A breach of that level could further dampen investor sentiment.
Current Outlook:
– Avoid fresh buys, do not average down.
– Protect profits and cut losses.
– Build a watchlist.
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