Today’s Action:
Major indices pocket decent gains; rise for the third straight session.
Daily Market Review:
Frontline indices got off to a decent start this week, as both the Sensex and Nifty extended their winning streak to three sessions.
Despite weak global cues, India’s major indices opened in green and continued to climb higher as the day progressed. Eventually, both the indices brought home modest gains of 0.5%.
Strength in key indices was mainly because of strong price action in the banking and FMCG stocks. IndusInd Bank, Kotak Mahindra Bank, and Hindustan Unilever scaled all-time highs in today’s session.
Following an impressive rally last week, the Nifty Midcap and Smallcap indices took a breather, as they settled with small gains of 0.4% and 0.1%, respectively.
On the sectoral front, the day belonged to the Nifty FMCG and Bank indices, which posted gains of 1.1% and 0.9%, respectively. On the flip side, the Nifty Media and IT indices slipped 1.1% and 0.6%, respectively.
Our proprietary list of leading stocks, the MarketSmith India {IND 47 index} outperformed the overall market comfortably, as it advanced 0.9% in today’s session.
Market breadth remained in favour of gainers today. Of the 1,612 stocks traded on the NSE, 941 gained, 616 declined, and 55 remained unchanged.
Despite trade war fears looming over the global market, India’s frontline composites have showcased resilience. Skymet’s forecast of a normal monsoon in 2019, RBI’s projection of higher growth and lower inflation in FY 2019 and expectations of a good earnings season have brought market bulls to the fore.
With the Indian market in a Confirmed Uptrend, the green light is on for investors to look out for growth stocks that are breaking out of sound chart patterns. Thursday’s follow-through day has brought along breakouts in leading stocks, which is a positive sign.
That being said, the resistance at 50-day line continues to be Nifty’s nemesis. The index closed 0.7% below its 50-day line. A retake of the 50-day line would certainly be a sign of good things to come.
Current Outlook
– Market environment conducive for 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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