Today’s Action:
Major indices settle for minor gains; broader market ends on a mixed note.
Daily Market Review:
Selling pressure in the final hour of the session forced frontline indices to settle for small gains. After trading firmly for most part of the session, the Nifty and the Sensex closed 0.2% and 0.1% higher, respectively.
It was a similar story in the broader market as the Nifty Midcap pared early-session gains. Eventually, the Nifty Midcap closed 0.03% lower, while the Nifty Smallcap inched 0.2% higher.
Market participants will be closely watching key economic and political events during the week. Domestic consumer inflation data for May will be announced after market hours tomorrow. Besides, the Fed interest rate decision and the U.S.-North Korea summit are the key events taking place this week.
Trade war fears might resurface again going by the recent comments of the U.S. President, Donald Trump. He expressed his dissatisfaction over unfair import duties levied on U.S. goods not only by G7 countries but India as well.
Coming back to today’s action, the overall market breadth remained healthy, as the ratio of gainers and losers came at 7:5 on the NSE.
On the sectoral front, all sector indices ended in the green, barring Nifty Realty (-0.6%) and Metal (-0.4%). Nifty Media (+1%) and Pharma (+0.5%) were the top gainers.
Our proprietary list of leading stocks, the MarketSmith India IND 47 index gained 0.4%, outperforming the overall market.
Today’s session saw some quality stocks making all-time highs. Stocks that scaled fresh highs today include Bajaj Finance, VIP Industries, Marico, and Nestle India, among others.
In absence of a decisive movement in the Nifty, the Indian market condition remains unchanged at an Uptrend Under Pressure. While both key indices are only 2-3% away from their all-time highs, there is still some strong overhead resistance. For the Nifty, 10,930 level serves as a major resistance. On the downside, the 10,550 serves as a crucial support level.
The broader market indices seemed to have bottomed out, but we would like to wait for a strong high-volume up day for confirmation. Both Nifty Midcap and Smallcap are currently in a Rally Attempt. The midcap and smallcap benchmarks have high overhead resistance and are trading 14% and 21% below their January highs.
Current Outlook:
– Be cautious with new purchases.
– Form a defensive game plan for your portfolio.
– Stay disciplined and exercise sound sell rules.
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