Today’s Action:
The benchmark indices observe another divergent trend. The Nifty sheds a distribution day.
Daily Market Review:
The Indian stock indexes tilted opposite ways for the day, as the Nifty ended the day with modest gains while BSE Sensex lost ground. Tracking the positive global cues, the Indian market opened on a higher note but the mid-morning profit booking at higher levels trimmed all gains.
In the end, the Nifty recorded a modest gain of 0.01% at 10,443.20 while the Sensex was down 0.06% at 33,793.38.
While considering the broader market, Nifty Smallcap outshines the most as the indices pocketed a gain of 1.29%, whereas Nifty Midcap inflated 0.68%.
Moving to the sectoral front, Nifty Metal gained the most momentum as indices posted a 1.45% gain. Other sectors such as Nifty Realty (+0.47%) and FMCG (+0.43%) posted decent gains. On the flip side, Nifty Auto (-0.51%), Pharma (-0.48%), and Financials (-0.12%) lost the most.
The market breadth, which indicates the overall health of the market, was also in favour of gainers today. On the NSE, 1,177 stocks advanced and 602 stocks declined. A total of 80 stocks remain unchanged.
The MarketSmith India IND 47 list gained +1.48%, outperforming the market comfortably. Around 60% of the leading growth stocks from the list ended positively. Tasty Bite Eatables gained the most as the stock hits the upper circuit of 20%.
As per our research, the health of any bull market with higher distribution day count is a concern. However, the distribution count for the Nifty got reduced to five, as the November 28 distribution fell off the count due to time. With the benchmark indices constructively trading above the 50- and 200-DMAs, the Indian market condition remains in a Confirmed Uptrend.
Current Outlook:
– Market environment conducive for new purchases, but remain selective.
– Focus on fundamentally strong stocks breaking out of strong technical patterns.
– Stay disciplined and exercise sound buy and sell rules.
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