Today’s Action:
The benchmark indices witness resistance. Broader indices manage to end positive.
Daily Market Review
The benchmark indices started sharply lower in today’s session, midst consolidation due to ongoing geopolitical unrest. As the session progressed the indices trimmed losses and managed to end at the upper end of the range. A similar trend was observed in other Asian peers.
Today, the Nifty opened lower at 9,897.00 and hit an intraday low of 9,883.55. However, the index managed to recover some losses, before finally settling at 9,916.20, down 0.36% from the previous close. Similarly, the BSE Sensex opened at 31,713.01 and trended lower to hit a low of 31,601.83. Later in the session, the index tried to recover, but ended the day at 331,661.97, losing 0.46% from yesterday’s close.
The market breadth, indicating the overall health of the market was equally balanced today, with 748 stocks advancing higher, compared with 749 stocks declining, and 35 stocks remaining unchanged.
In today’s session, broader indices held on to the positive territory, despite starting significantly lower. The Nifty Midcap and Smallcap indices picked up steam as the session progressed and ended the day with gains of 0.03% and 0.38%, respectively.
Today, the MarketSmith India IND 47 Index, which lists the top 47 stocks in chart on fundamental characteristics, continues to outperform the major indices with a gain of 0.68%.
The sectoral chart displayed a mixed picture today; while a few sector indices managed to trend higher, the other indices posted significant losses. The Nifty Metal, Media, and Energy indices posted gains of 0.75%, 0.17%, and 0.13%, respectively. On the negative end, the Nifty Pharma, FMCG, and PSU Bank indices declined the most with losses of 1.55%, 1.34%, and 0.98%, respectively.
The Prime Minister’s Office has strictly instructed the Income Tax Department to inspect black money deposited in bank accounts after the demonetization move. Prime Minister Narendra Modi addressed the key departments of the Finance Ministry through his speech and has strictly mandated a crackdown on suspicious activity since the note ban phase.
Today’s loss for the Nifty came on a higher volume in comparison to yesterday’s session, resulting in a distribution day. The Sensex managed to avoid a distribution day due to slightly lower trading volume. The new distribution day count for the Sensex and the Nifty stands at 7.0, each. The Indian market status remains in Uptrend Under Pressure.
Current Outlook:
– Be cautious with any new purchases.
– Make a defensive game plan for your portfolio.
– Stay disciplined and exercise sound sell rules.
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