Today’s Action:
Nifty witnesses positive reversal; reclaims 10,700 level.
Daily Market Review:
The Indian stock indices pocketed decent gains on Monday, as the worries of global trade war eased out.
Major indices opened on an undertone note as the crude oil prices touched highest level since November 2014. The crude oil price has surged 67% since June 2017 to $70 per barrel leading to weakening of the Indian rupee. The surge was in accordance with rising Venezuela’s economic crises and higher chances of U.S. re-imposing sanctions on Iran.
However, fresh buying momentum and gains in heavyweight stocks like Icici Bank, Reliance Industries, and Itc pushed the major indices to trade higher.
In the end, Nifty gained 0.9% whereas Sensex claimed 0.8% gain. Both the major indices are now trading above the psychological level of 10,700 and 35,200, respectively.
Buying was not limited to large caps, as the Nifty Midcap and Smallcap picked up 0.8% and 0.7% gain, respectively.
In terms of sectoral indices, most sectors were positive. Nifty PSU Bank (+2%), Media (+1.7%) and Metal (+1.7%) had a great outing whereas, Nifty Pharma (-0.5%) and IT (-0.2%) were sluggish in today’s session.
With regards to market breadth, gainers had an edge over losers. Of the 1,614 stocks traded on the NSE, 838 advanced, 709 declined and 67 remained unchanged.
Buoyant by midcap and smallcap stocks, our proprietary list of leading stocks, the MarketSmith India IND 47 index increased 0.4% in today’s trade.
The distribution count, which measures heavy-volume selling in recent times, stays unchanged at two for Nifty and one for Sensex. Both the indices are still trading comfortably above their key support levels of 50- and 200-DMA. Hence, the market remains in 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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