Today’s Action:
Nifty records modest gain to end at two-month high.
Daily Market Review:
The Indian stock market made a bullish reversal on Monday, as the Nifty and Sensex started off the week on a positive note.
In the morning session, benchmark indices were trading lower on account of weak global cues. However, a bout of volatility was observed as the frontline indices bounced back sharply.
The Nifty added 0.2% and Sensex 0.1%. Both the composites were up as much as 0.7% before gains faded, especially in the final hour of trading.
More important is the fact that both the indices added some space above their 50-DMAs. Those lines represent potential barriers for the market.
The Nifty Midcap outperformed slightly, as the index picked up 0.7%. The Nifty Smallcap rose 0.2%.
In terms of sectoral indices, Nifty Realty (+1.6%) and Pharma (+1.5%) hogged the limelight. IT stocks also had a good day as the Nifty IT rallied 0.7%.
The rally in IT stocks was so strong that it helped India in getting its $100 billion company after a decade – Tata Consultancy Services. Mukesh Ambani led Reliance Industries had surpassed this milestone in 2008.
Market breadth was in favour of advancing stocks over losers. Of the 1,645 stocks traded on the NSE, 818 advanced, 765 declined, and 62 remained unchanged.
Our proprietary list of leading stocks, the MarketSmith India IND 47 index outperformed the market with a gain of 1.1% in today’s session.
Both the frontline indices are constructively trading above their 50- and 200-DMAs with no distribution observed recently. The outlook 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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