Daily Big Picture – Nifty Holds Ground Amidst Earnings Volatility

MarketSmith India_William Oneil India

Today’s Action:

The key indices build on wins from the previous session. The broader indices outpace key composites as the Nifty Smallcap index extends high.

Daily Market Review:

The benchmark indices extended gains in today’s trading session, boosted by a positive momentum in the banking, financials, and metal stocks. After starting the day in green, the benchmark indices witnessed volatility in view of the ongoing earnings season. Investors were a bit cautious ahead of earnings updates from the index heavyweights, HDFC Bank and Infosys. HDFC Bank’s Q2 performance came in line with street expectations, while Infosys is set to release an update after the market hours.  

The Nifty started the day at 10,215.40 and traded in the range of 10,183.30-10,236.95 before finally settling at 10,207.70, up 0.22%. After opening at 32,621.96, the Sensex traded in the range of 32,507.61-32,666.63. It ended the day at 32,607.34, with gains of 0.31%.

The market breadth, indicating the overall health of the market, was inclined towards the gainers. On the NSE, 936 stocks advanced, compared with 743 stocks declining, and 295 stocks remaining unchanged.

The broader markets outperformed key indices comfortably. The Nifty Midcap and Smallcap indices gained 0.34% and 1.18%, respectively. The Nifty Smallcap index marked a fresh all-time high as a result of today’s gain.

Today, the MarketSmith IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics, ended flat at -0.02%.

On the sectoral front, all sector indices barring Nifty IT (-1.03%), Pharma (-0.55%), and Auto (-0.27%), recorded significant gains. Nifty PSU Bank and Media indices lead the rally with hefty gains of 3.79% and 3.61%, respectively.

Trading volume on the key indices remained at the same level as yesterday. The Sensex and the Nifty hold a distribution day count of 4, each. The market status remains in 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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