Today’s Action:
Major indices extend gains; broader market depicts mixed performance.
Daily Market Review:
India’s benchmark indices continued their good run, clocking gains for the fourth consecutive session.
Despite weak global cues, the major indices opened on a positive note but lost steam later on.
A strong comeback by Asian markets improved investor sentiment to a certain extent. Asian shares bounced back sharply after Chinese President Xi Jinping promised to lower import tariffs on products including cars this year.
In the end, both the Nifty and Sensex brought home decent gains of 0.2-0.3%.
Gains in frontline indices were mainly on account of strong price action by private banking stocks. Axis Bank and ICICI Bank climbed higher by 5.2% and 2.8%, respectively.
The broader indices showcased a divergent trend. The Nifty Midcap index closed 0.2% higher, while the Smallcap index posted a miniscule loss of 0.01%.
Talking about sectoral action, the Nifty Metal (+2%) and Realty (+1.1%) emerged as top gainers. On the downside, the Nifty Auto and Pharma indices posted losses of 0.8% and 0.2%, respectively.
Contrary to the gains in key indices, market breadth favored losers today. Of the 1,574 stocks traded on the NSE, 828 declined, 699 gained, and 47 remained unchanged.
Our proprietary list of leading stocks, the MarketSmith India {IND 47 index} fell 0.4% in today’s session.
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 almost 0.3% 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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