Today’s Action:
Selling streak extends to six sessions; Nifty, Sensex likely to test 200-day lines soon.
Daily Market Review:
Just like a critical patient struggling from a life-threatening disease in an ICU, the Indian market condition has been getting worse with every passing day.
The Indian equities have been way too ruthless in recent times, with almost each trading session rubbing salt on wounds of millions of investors.
Six down sessions in a row, previous support levels breached and key indices down more than 9% from their yearly highs showcase the might of bears in this market.
Today’s chart looked much like a menacing slide in a water park; as the market kept slipping right from the word go. In the end, both the benchmark composites, the Nifty and the Sensex, slipped around 0.9%.
Broader indices added more pain, as the Nifty Midcap and Smallcap tumbled 1.6% and 2.2%, respectively.
Barring the Nifty FMCG index, not even a single sector index managed to close in green today. The PSU banking, pharma and financial services stocks were the worst hit in today’s session.
Taking cues from the general market, the IND 47 index, which is a list of the top 47 stocks in chart and fundamental characteristics, slipped 1.6% today.
The advance-decline ratio favoured losers once again. Of the 1,570 stocks that traded today, 190 gained, 1,358 declined, while 22 names remained unchanged.
Concerns of a global trade war increased further after Gary Cohn’s resignation from the post of chief economic advisor in the U.S. Gary Cohn had opposed Donald Trump’s idea of levying tariffs on steel and aluminum imports.
In an environment of weakening rupee and rising bond yields, foreign institutional investors have been dumping stocks for quite some time now. FIIs withdrew a whopping Rs. 18,619 crore from the Indian stock market last month.
India’s key indices have come under immense selling pressure since the beginning of February 2018. The market outlook was downgraded yesterday to a Downtrend for the first time since the demonetisation correction in November 2016.
Current Outlook:
– Avoid fresh buys, do not average down
– Protect profits and cut losses
– Build a watch list
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