Daily Big Picture – Nifty Shifts Gear; Moves Closer to 50-Day Line

Daily Big Picture

Today’s Action:

Major indices pocket decent gains to close marginally below their 50-day lines


Daily Market Review:

Mirroring strength in the global markets, India’s key indices got off to a strong start, as both the Sensex and Nifty gapped up in today’s session.

Contrary to what has been witnessed in previous few sessions, the benchmark composites did not let up and held onto their gains throughout the day.

Both the Sensex and Nifty came extremely close to retaking their 50-DMAs before falling short by a few points. In the end, both were able to log good gains of around 0.9%.

Broader indices also climbed higher but not with the same intensity as the frontline indices. The Nifty Midcap and Smallcap indices advanced 0.7% and 0.6%, respectively.

On the sector front, realty, auto, media and private banking stocks displayed strength, while the IT and PSU Bank sector indices slipped lower.

The IND 47 index, which is a list of top 47 stocks in chart and fundamental characteristics, outperformed the market with a gain of 1.4%.

The advance-decline ratio favoured the gainers today. Out of 1580 traded stocks, 919 stocks advanced while 618 declined. A total of 43 stocks remained unaffected by today’s movement.

Talking about stocks, Oriental Bank of Commerce sold-off 10.4% and hit a 52-week low, after reports of a loan default case worth Rs 109 crore came to light.

With respect to market direction, India’s key indices did well to come very close to their 50-DMAs. From here on, it would be interesting to see if both the Sensex and Nifty are able to reclaim their 50-day lines comfortably. Till then, we would remain a bit cautious in our stance. The distribution day count remains unchanged at four and five on the Nifty and Sensex, respectively, keeping the Indian market in an Uptrend Under Pressure.

On a positive note, both the major indices have managed to stay above their respective lows made on February 6, 2018. That gives us comfort as the indices have found some support near their previous lows. On the downside, if the distribution count remains high and the key indices breach their previous lows, we might consider moving the Indian market to Downtrend.

Current Outlook:

– Be cautious with any new purchases

– Form a defensive game plan for your portfolio

– Stay disciplined and exercise sound sell rules

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