Daily Big Picture – Market Gets Off to a Good Start in FY 2019

Today’s Action:

Major indices score solid gains; broader market outperforms.

Daily Market Review:

The Indian stock market closed in green for the third consecutive session today, after going through a rough patch in recent times.

The positivity can be traced to gains in global equity markets on the back of fading trade war concerns.

India’s benchmark indices advanced right from the word go, with the Nifty rising 1% and managing to reclaim its 10,200 mark. Sensex settled with a gain of 0.9% and reclaimed the 33K-level.

Broader indices hogged the limelight in today’s session, as the Nifty Midcap and Smallcap indices surpassed frontline indices gaining ~1.8% each in today’s session.

All the sectoral indices ended in the green today except Nifty PSU Bank (-0.8%). The top gainers in today’s trade were Nifty Pharma (+3.1%), Auto (+2.2%), and IT (+1.6%).

Auto shares gained on account of strong March vehicle sales. The top auto gainers were TVS Motor (+6.7%), Motherson Sumi (+4%), and Tata Motors (+3.8%). Escorts, Bosch, Tata Motors, Bharat Forge, Hero MotoCorp, Exide Industries, Bajaj Auto and Ashok Leyland gained over 2% each.

Our proprietary list of leading stocks, the MarketSmith India {IND 47 index} posted a phenomenal gain of 2.6% in today’s session.

The advance-decline ratio favoured the gainers today. Of the 1,594 stocks traded on the NSE, 1,329 gained, 236 declined, and 29 remained unchanged.

Market participants will keep a close eye on the Reserve Bank of India’s first bi-monthly interest rate meet of FY 2019 to be held later this week.

We changed the market status to Rally Attempt on Wednesday, after key indices were able to hold above their previous lows (of March 23). We would prefer to see a follow-through day before shifting the market status to Confirmed Uptrend. On the flip side, if the Nifty breaches its March 23 low, the market status will be moved back to a Downtrend.

Current Outlook

– Keep a watch list of growth stocks ready

– Wait for the market to follow through or strong price action in leading stocks before acquiring new positions

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