Today’s Action:
The Nifty and the Sensex witnessed divergent trend today amidst consolidation. Negative sentiments, due to Paradise papers, loom over the market.
Daily Market Review:
Equity indices started the day on a negative note and traded almost flat for the first half of the trading session, during afternoon, some accumulation was observed as both the Sensex and the Nifty made an intraday all-time high. However, the last hour trade eroded all gains, as the Nifty ended flat today.
The Nifty started the day almost 20 points lower at 10,431.75 and ended flat today at 10,451.80 (-0.01%). It traded in the narrow range of 10,413.75-10,490.45. The BSE Sensex posted a gain of 0.14%, in today’s trading session, after starting the day at 33,710.15. After trading in the narrow range of 33,582.38-33,848.42, it finally closed at 33,573.22.
The action in the broader market remains bullish, as Nifty Midcap and Smallcap continue to extend their rally with a gain of 0.15% and 0.14%, respectively.
The market breadth, which indicates the overall health of the market, was titled toward the loser in today’s session. On the NSE, 760 stocks advanced, compared with 782 stocks declining and 51 stocks remaining unchanged.
Most of the sectors ended in the positive territory; barring Nifty Energy, Private Bank, and Bank which lost 0.70%, 0.56%, and 0.31%, respectively. Auto, PSU, and IT stocks surged the most as the sector indices gained 1.32%, 0.92% and 0.84% respectively.
The MarketSmith IND 47 Index, our proprietary list of the top 47 stocks in technical chart and fundamental characteristics, gained 0.64% today.
Today,Titan surged 25% intraday, due to strong Q2 FY 2018 numbers posted on Friday. The growth in jewelery segment was the major driver of EPS growth.
The weakness in the market can be attributed to the leak of financial data named, Paradise Papers by the International Consortium of Investigative Journalists (ICIJ). The 13.4M documents contains data mostly from Appleby, a Bermuda-based legal service provider and Singapore-based Asiaciti, which facilitated the wealthy individuals in transferring their wealth to tax havens. As per reports, about 714 Indians may have been involved in this tax evasion.
Both the Nifty and the Sensex observed a lower trading volume today, compared to previous day trading session. The distribution day count stands at two on the Nifty and none on the Sensex, while Indian market remains in 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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