Today’s Action:
Key composites recover at the fag-end; Midcap index outperforms.
Daily Market Review:
Despite weakness in global equity markets, India’s benchmark composites managed to limit losses, thanks to a late recovery.
The Nifty and the Sensex ended the day with small losses of 0.15% and 0.06%, respectively.
The broader indices showcased a divergent trend. The Nifty Midcap index posted a gain of 0.4%, while the Smallcap benchmark closed 0.04% lower.
Investor sentiment improved a bit after wholesale inflation dropped to a seven-month low of 2.48% in February.
On the sector front, the Nifty PSU Bank (+1.8%) and Media (+1.5%) emerged as top gainers. On the downside, the Nifty Realty and Metal indices posted losses of 0.6% and 0.5%, respectively.
Our proprietary list of leading stocks, the MarketSmith India IND 47 index, scored a miniscule gain of 0.05% today.
The advance-decline ratio favored losers marginally. Of the 1,567 stocks traded on NSE, 737 gained, 755 declined, and 75 remained unchanged.
In the absence of a follow-through day, the Indian market outlook remains unchanged at a Rally Attempt. Both the key indices are still trading below their key resistance of 50-DMAs.
The benchmark indices are not much far from their recent lows and any further weakness could see the market going back in a Downtrend. In such scenario, we suggest investors to remain cautious until you see a follow-through day or at least strong price action in the leading stocks. Remember, no market uptrend has started without giving a signal in the form of a follow-through day.
Current Outlook:
– Keep a watch list of growth stocks ready
– Wait for the market to follow through or strong price action in leading stocks before acquiring new positions
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