Daily Big Picture – Nifty Scales New High; Sensex Crosses 37K

Daily Big Picture

Today’s Action:

Major composites at all-time highs; broader market gains for fourth straight session.

Daily Market Review:

Records kept tumbling as the Sensex crossed the milestone of 37,000 in today’s session. The Nifty was not far behind, with the index scaling a new high for the first time in about six months.

Buoyed by strong earnings posted by a majority of Indian companies, investor spirit remained high as broader indices posted gains for the fourth session in a row.

The Nifty Midcap and Smallcap indices outperformed their larger peers, ending with gains of 0.6% each.

The market breadth tilted in favour of gainers in today’s session. Out of the 2,068 stocks traded on the NSE, 888 advanced, 848 declined, and 332 stocks remained unchanged.

On the sectoral front, the Nifty PSU Bank (+5.5%), Financial Service (+1.7%) and Bank (+1.4%) posted strong gains. The Media (-0.8%), Metal (-0.8%) and IT (-0.7%) indices found themselves among the top losers.

As per a report by ICRA, the PSU banks that are not under the Reserve Bank of India’s prompt corrective action framework are expected to maintain their loan market share of 50-51% in the coming years. Out of the 12 stocks in Nifty PSU, 11 stocks gained in today’s session with Bank of India and Canara Bank surging 8.4% and 7.7%, respectively.

MarketSmith India’s IND 47 index, our proprietary list of top 47 stocks in chart and fundamental characteristics, underperformed the key indices as it inched lower by 0.04%.

Talking about the overall market direction, the market remains in a Confirmed Uptrend. Also, the distribution day count which keeps a track on institutional selling in recent times dropped to three on the Nifty and two on the Sensex. The June 21 distribution day became irrelevant and fell off the count as 25 sessions have passed since then.

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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