Daily Big Picture – Last Hour Trade Lifts Up Market Spirit

MarketSmith India_William Oneil India

Today’s Action:

Equity benchmarks displayed some strength amidst mutable global cues. Both the indices observed a volatile trading day due to the expiry of September derivatives contract.

Daily Market Review:

The benchmark indices snapped from its seven-day long losing streak, thanks to the last hour trade. Amidst volatility, the indices managed to close in green bringing some respite to the investors. Broader indices managed to outperform the frontline indices.

After opening flat at 9,736.40 the Nifty managed to post a gain of 0.34% today. After a range bound journey from 9,687.55-9,789.20 it settled at 9,768.95. The BSE Sensex started the day at 31,216.36 and traded in the range of 31,081.83-31,340.91. After gaining 0.39% in today’s trading session, it ended the day at 31,282.48.

The market breadth, indicating the overall health of the market was in favour of the gainers today. On the NSE, 902 stocks advanced, compared with 535 stocks declining, and 61 stocks remaining unchanged.

The broader markets also put up a great show today as both the Midcaps and the Smallcaps gained 0.56% and 0.99%, respectively.

The MarketSmith India IND 47 Index, which lists the top 47 stocks in chart on fundamental characteristics, gained 0.63% today.

Barring Nifty Energy, Media, and IT, which lost 0.68%, 0.22%, and 0.21%, respectively, all the other sectors managed to end up in green today. The top three gainers were Nifty Financial Service, Realty, and Pharma gaining 1.12%, 1.10%, and 0.83%, respectively.

In stock news, Ruchi Soya Industries share price rallied 13.7% intraday on recent news of it signing an exclusive distribution partnership agreement with Patanjali for edible oil.

Reliance Industries Limited (RIL) has outbid rivals, including state-owned GAIL India, to buy the entire volume of natural gas from its own coal seam blocks until March 2021.

The Nifty observed a higher volume, while the Sensex observed a lower trading volume today. The distribution day count remains at 4 for the Nifty and 3 for the Sensex. The market status remains in “Uptrend Under Pressure”.

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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