Today’s Action:
Key indices end choppy session on a flat note, broader indices underperform.
Daily Market Review:
India’s frontline indices traded mostly erratic in today’s session. After opening on a positive note, both the Sensex and the Nifty succumbed to profit booking to drift lower.
Investors opted for a cautious stance ahead of tomorrow’s no-confidence vote against the BJP government.
In the end, both the Nifty and the Sensex slipped 0.2% and 0.1%, respectively. Since, volumes were low, the Nifty escaped adding a distribution day.
Out of 50 stocks traded in the Nifty, around 29 stocks traded lower with Kotak Mahindra Bank (-3.8%) leading the fall. On the NSE, decliners outnumbered gainers by a huge margin of 7:3.
In the broader market, the Nifty Midcap and Smallcap continued to lag as they dropped 0.7% and 0.6%, respectively.
On the sectoral front, there was a sea of red as most indices ended lower except Nifty FMCG (+0.8%) and PSU Bank (+0.5%). Among all, Nifty Pharma, IT, and Private Bank were the worst hit, as they lost 1.5%, 1%, and 0.6%, respectively.
MarketSmith India’s IND 47 index, our proprietary list of top 47 stocks in chart and fundamental characteristics, dropped 0.7%.
The distribution day count remains unchanged at five on the Sensex and six on the Nifty. Since both the key indices are still trading near their all-time highs, the market condition remains in a Confirmed Uptrend. However, the broader market continues to be weak with the Nifty Midcap and Smallcap in a Downtrend.
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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What is ur opinion in madcap in the current situation because here only one factor is negative only is dolar is strong again rupee & the political problem is not the seriousness because only 9 months left. So pls share ur opinion to enter or exit from madcap.I know the one theory of sell in rise & buy on dips but in miadcap their is no signal.