Today’s Action:
Frontline indices slip once again, escape distribution day.
Daily Market Review:
The stock market closed sharply lower on Monday to mark a five-day losing streak, the longest in over two months.
Despite a positive start on the bourses, bears took complete control over Dalal street and pushed the key indices lower. The Sensex tumbled 0.7% and the Nifty 0.8%.
Amid rising crude oil prices, investors remained cautious and preferred a profit booking route. However, volume came at lower levels and hence both key indices escaped adding distribution day.
On the expected lines, decliners overtook gainers by a 7-2 margin on the NSE.
The broader market faced a heavy sell-off as the Nifty Midcap and the Smallcap plunged 1.6% and 2.5%, respectively. Both indices are trading below their 50-DMA with a high distribution count.
Most sectors in today’s session succumbed to profit booking barring Nifty PSU Bank (+2.7%) and IT (+0.2%). Among all, Nifty Realty (-3.3%) and Pharma (-2.8%) were the biggest laggards.
MarketSmith India’s IND 47 index, our proprietary list of top 47 stocks in chart and fundamental characteristics, lost 2% today.
The distribution day count remains unchanged at three on Nifty and two on Sensex and both the indices are trading above its 50-DMA and 200-DMA. For now, we are comfortable in keeping the Indian market condition at an Uptrend Under Pressure.
That being said, broader market indices are looking in bad shape as a massive build-up in distribution days has sent both the Nifty Midcap and Smallcap indices in a Downtrend.
Current Outlook:
– Be cautious with any new purchases
– Form a defensive game plan for your portfolio
– Stay disciplined and exercise sound sell rules
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