Today’s Action:
Major indices post modest losses in a weak session; broader indices witness heavy selling.
Daily Market Review:
The Indian stock market saw a decelerating trend in the trading session today, after two positive sessions. The Sensex lost 130 points but was able to recover its 33,000 level, while the Nifty lost 40 points and managed to close above the 10,100 mark. Eventually, the Nifty and the Sensex settled at a loss of ~0.4% each.
Domestic markets faced a volatile session on account of global cues, after the U.S. Federal Reserve increased interest rates and proclaimed doing so again at least twice in 2018, and continue hiking interest rates over the forthcoming three-year period.
Broader indices underperformed the frontline indices, with the Nifty Midcap losing 0.84%, while the Smallcap saw a decline of 1.44%.
All the sectoral indices ended in the red today except Nifty Metal (+0.3%). The top losers in today’s trades were Nifty PSU Bank (-2%), Media (-1.3%), and Realty (-1.2%).
Our proprietary list of leading stocks, the MarketSmith India IND 47 index, underperformed the overall market, witnessing a decline of 0.95% in today’s trading session.
The advance-decline ratio stood in favor of losers today. Of the 1,558 stocks traded on NSE, 330 gained, 1194 declined, and 34 remained unchanged.
On the political front, the market participants continue to keep a close eye on the parliamentary developments relating to the Telugu Desam Party after the party moved a no-confidence motion against the NDA government.
Global investors are trading cautiously although the Fed interest rate hike was already factored in the past few trading sessions. Also, the global trade war fears have intensified after reports suggested that Donald Trump is planning to announce tariffs on more than 100 types of Chinese goods owing to intellectual property violations.
For now, the Indian market outlook remains unchanged at a Downtrend. If the key indices manage to hold above March 20 lows tomorrow, we will consider moving the Indian 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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