Today’s Action:
The benchmark indices extended their gains. The Nifty Midcap records a new high.
Daily Market Review:
The Indian stock indices reverted to their indefinite bullish trend on Thursday, as positive cues from global markets supported broad-based buying. Tracking the overnight rally of the U.S. market, India’s major average opened on a flat-to-positive note and continued to trend upward as positive European cues strengthened investors’ confidence.
In the end, the Nifty pocketed a gain of 0.59% at 10,504.80 while the Sensex jumped 0.52% to close at 33,969.64.
Most of the sectors performed well. The top three gainers in today’s trading session: Nifty Metal (2.82%), PSU Bank (+2.74%), and Pharma (+1.20%). However, not all sectors are participating in January’s rally. The Nifty Auto followed Wednesday’s 0.51% drop with a 0.20% decline today.
The Nifty Smallcap, the leading index in 2017 derived benefits from the aggressive buying as it stormed 0.91% higher. However, the Nifty Midcap outperformed the market by closing to a record high of 21,308.35 (+0.98%).
The market breadth, which indicates the overall health of the market, continues to be in favor of gainers. Today, on the NSE, 1,031 stocks advanced and 544 stocks declined. A total of 30 stocks remain unchanged.
Our proprietary list, Market Smith India IND 47 outperformed, rising 1.6% as 16 names in the index of leading growth stocks rose 2% or more.
On the macro front, the Indian service sector returned to marginal growth in December. Nikkei Services Purchasing Managers Index (PMI) stood at 50.9 for December as compared with November’s decline of 48.5. A reading above 50 indicates the expansion of the sector.
The distribution day count for the Sensex and the Nifty remains at four and five, respectively, while the Indian market condition remains at 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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