Today’s Action:
Frontline indices deliver modest gains; broader market outperforms once again.
Daily Market Review:
The Indian stock market managed to close in the positive zone for the second consecutive session today, depicting shades of revived market optimism.
Despite weak global cues, leading indices did well to close with modest gains due to late-session buying. The Nifty rose 0.3% to settle at 10,245, while the Sensex gained 0.4%.
Broader indices outshined the frontline indices in today’s session, with the Nifty Midcap and Smallcap indices gaining 0.9% and 1.7%, respectively.
All the sectoral indices ended in green today except Nifty IT (-0.7%). The top gainers in today’s trade were Nifty PSU Bank (+1.7%), Private Bank (+1%), and Media (+1%).
Our proprietary list of leading stocks, the MarketSmith India {IND 47 index} outperformed the benchmark indices, gaining 1% in today’s trading session.
The advance-decline ratio clearly favored the gainers today. Of the 1,612 stocks traded on the NSE, 1,197 gained, 359 declined, and 56 remained unchanged.
Banking stocks saw an upsurge in today’s session, with State Bank of India, ICICI Bank, Axis Bank, Bank of India, and Bank of Baroda in the list of top gainers.
In the global news, Asian stocks extended a global sell-off as investors are being conservative due to an escalating trade fight between the U.S. and China. Falling tech stocks such as Amazon.com added on to the negative investor sentiment.
On the economic front, India’s manufacturing growth fell to a five-month low with Nikkei India Manufacturing PMI slipping to 51 in March, compared to 52.1 in February.
Today’s market action was encouraging, considering few leading names breaking out of their base patterns to enter new high ground. However, in the absence of a follow-through day, the Indian market remains in a Rally Attempt. On the downside, if the Nifty breaches its March 23 low, the market status will be moved back to a Downtrend.
Going ahead, market participants will keep a close eye on the Reserve Bank of India’s first bi-monthly interest rate meet of FY 2019 to be held this Thursday.
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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