Today’s Action:
Key indices resume their uptrend. Broader market outperforms.
Daily Market Review :
The Indian stock market reverted to its indefinite bullish trend, as modest loss on Wednesday followed today’s decent gains.
India’s benchmark indices advanced right from the word go and held onto its gains led by strong momentum in the metals and technology stocks. However, gains were restricted as selling pressure mounted on private banks and oil companies. Finally, both the Sensex and the Nifty brought home decent gains of 0.3% and 0.4%, respectively.
In the broader market, both the Nifty Midcap and Smallcap indices outshine the broader indices as they advanced 0.7% and 0.9%, respectively.
In terms of sectoral indices, most of them ended in green. Nifty Metal (+4.5%) and IT (+1.1%) were the top performers.
Market breadth turned in favor of gainers today. Of the 1,499 stocks traded on the NSE, 809 advanced 629 declined, and 61 remained unchanged.
Our proprietary list of leading stocks, the MarketSmith India IND 47 index advanced 0.8% in today’s session.
Talking about market direction, it is been two weeks since the market made a follow-through day to confirm a new uptrend and no distribution day so far. Further, both the frontline indices are constructively trading above their 50 and 200-day moving averages. Hence, the outlook remains unchanged at 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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