Daily Big Picture – Market Extends Gains in a Sudden Turn of Events

MarketSmith India_William Oneil IndiaToday’s Action:

Final hour rally boosts key indices. Midcap index marks similar gain, while Smallcap index outperforms.

Daily Market Review

The Indian benchmark indices witnessed volatility in view of the August derivative contract expiry. After trading in the negative territory for a major part of the session, the key indices recouped losses in the final hour to end the day with mild gains. Investors were also cautious of the Q2 GDP data that is due later today. In the August series, the Nifty and Sensex declined by 1.02% and 2.02%, respectively.

Today, the Nifty opened higher at 9,903.85 and soon lost momentum as it hit an intraday low of 9,857.35. In the second half, the index built momentum, as it touched an intraday high of 9,924.65, before finally settling at 9,917.90, up 0.34% from yesterday’s close. The BSE Sensex opened at 31,685.44 and trended lower, hitting an intraday low of 31,554.88. In the last hour of trading, the index surged, reaching the highest point of the day at 31,749.18. The index finally ended at 31,730.49, up 0.27% from yesterday’s close.

The market breadth, indicating the overall health of the market, was favouring the gainers in today’s session. On the NSE, 974 stocks advanced, compared with 656 stocks declining, and 332 stocks remaining unchanged.

The Nifty Midcap index moved in-line with the benchmark indices, recording a gain of 0.36%, by the close of the trading session. A strong momentum was seen in the small caps as the Nifty Smallcap index advanced higher by 1.21%, comfortably outperforming the other major indices.

Today, the MarketSmith India IND 47 Index, which lists the top 47 stocks in chart on fundamental characteristics, put on a solid performance with a gain of 1.01%.

On the sectoral chart, Nifty Pharma (-0.54%) index had a bad outing at the bourses, today, while Nifty Metal (-0.10) and Pvt Bank (-0.08%) indices recorded marginal losses. Rest of the sectoral indices managed to end on the positive side led by Nifty Realty (+1.36%), Energy (+1.21%), and IT (+0.62%) indices.

In stock talk, Biocon fell over 2% after the U.S. Food and Drug Administration extended the target action date for its breast cancer drug. On the other hand shares of Ajanta Pharma witnessed buyer demand upon receiving USFDA approval for their migraine drug. Similarly, Neuland Laboratories surged about 14% after getting a nod from USFDA for its Austedo drug.

Shareholders of Indian IT heavyweight, Wipro approved the proposal of a share buyback worth INR 11,000 crore. The Company fixed September 15 as the record date to list the shareholders eligible for the buyback.

Today, the headline indices observed heavy trading volume as compared to yesterday’s trading session. The distribution day count for the Sensex and the Nifty stands at 7.0 and 6.0, respectively. The indices have recovered significantly from their recent lows and are currently under 3% from their all-time highs. The Indian market 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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