Daily Big Picture – Market Moved to an Confirmed Uptrend; Realty and PSU Bank Stocks Lift Market

Today’s Action

Benchmark indices continued to rally, marking the seventh consecutive trading day in which they have posted gains. Nifty, +0.5%, Sensex, +0.4%, Model Portfolio, +0.8%; MSI Ind 47, +0.5%.

Daily Market Review

 Markets continued their recent trend. Indices have now posted gains in seven trading sessions in a row, making it the longest run of gain days since May, and indicating a buying demand among investors.

On the sectoral front, all the indices, barring Nifty  IT and Pharma, posted gains. Nifty Realty (+3.0%) and Nifty PSU Bank (+2.9%) gained the most, while Nifty IT (-0.9%) declined the greatest. Indiabulls Housing Finance (+8.1%) and Bajaj Finserv (+4.1%) were the major gainers whereas HCL Technologies (-2.9%) and Sun pharma (-2.2%) were the losers among the Nifty50 stocks

The Nifty Midcap and Smallcap were both up 1.3%.

The advance-decline ratio was in favor of advancers. Of the 2,060 stocks traded on the NSE, 1136 advanced, 562 declined, and 362 remained unchanged.

The Indian market has been moved to a {Confirmed Uptrend} as the Nifty reclaimed the 10,942 level (market’s high before it was downgraded to an Uptrend Under Pressure). A follow-through day in the next few sessions will strengthen the current uptrend. We would like to see multiple high-quality stocks breakout from their pivot points and make new highs. For now, we recommend investors to stay selective and buy only high-quality growth ideas that are exhibiting strong relative strength compared to the market.

Though the Nifty has been moved to a Confirmed Uptrend, Nifty 500 and Nifty Smallcap are still in a Rally Attempt. It should be noted that the last time we changed the market status to a Confirmed Uptrend, the  Nifty 500 index was in a Rally Attempt then as well. Therefore, we would advise caution until the broader indices move to a Confirmed Uptrend.

Stocks in News

Reliance communications: The Company’s shares slipped as much as 9.5% today, after the Economic Times published a report that the Department of Telecom rejected the proposal of Rcom’s spectrum sale to Reliance Jio.

Indiabulls Housing finance: NBFC stocks rallied after the news that the Reserve Bank of India will buy more government bonds to address the liquidity crunch. Indiabulls housing finance company’s shares rose 8.1% today.

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