Today’s Action:
Key indices record decent gains following positive reversal.
Daily Market Review:
Stock indices broke out from its early range-bound session to record decent gains on Wednesday, notching a third up day in a row.
The day began on a tepid note, as Donald Trump’s decision to pull the U.S. out of Iran nuclear deal weighed on market sentiment. However, positive reversal in some banking and financial names along with metal and IT stocks scripted an impressive market recovery.
Overall, it turned out to be decent day, as the Sensex posted a 0.3% gain while the Nifty wiped out its 0.3% intraday loss to finish 0.2% higher. Volumes came lower as compared to the previous two trading sessions.
In the broader market, Nifty Midcap and Smallcap bucked the trend as they tumbled 0.5% and 0.3%, respectively.
On the sectoral front, Nifty IT (+0.6%) and Private Bank (+0.3%) were the top performing indices. On the flipside, stocks from Nifty PSU Bank (-0.7%), Pharma (-0.6%) and FMCG (-0.4%) dragged the market.
With regards to market breadth, decliners continued dominate advancers. Out of 1,636 stocks on NSE, 909 stocks declined, 645 stocks advanced and 82 remained unchanged.
Our proprietary list of leading stocks, the MarketSmith India IND 47 index advanced in line with the benchmark indices as it recorded a 0.2% rise in today’s trade.
The distribution count remains unchanged at two for Nifty and one for Sensex. Both the indices are still trading comfortably above their key support levels of 50- and 200-DMA. The market status remains unchanged at a Confirmed Uptrend.
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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