Today’s Action:
Key indices record losses on higher volume, distribution count increases.
Daily Market Review:
Investor sentiment oscillated between distress and relief, as key indices were highly volatile in today’s session.
While the market had a positive start amid strong global signals, the announcement of a no-trust motion against the BJP government triggered a reversal.
Earlier in the day, the Sensex opened at a record high while the Nifty was above 11,050 level. However, both the Nifty and the Sensex ended today’s erratic session in the red losing 0.3% and 0.4%, respectively. In addition, volumes were higher on both the composites compared with the previous session, signaling fresh distribution.
On expected lines, decliners outnumbered gainers by a margin of 5:2 on NSE.
In the broader market, the selling pressure was more intense as the Nifty Midcap and Smallcap dropped 1.1% each.
Weakness was witnessed across the board as all the indices ended in the red, barring Nifty IT (+0.1%). Nifty Metal and Realty were the most affected as the indices declined 3.2% and 2.4%, respectively.
Weighed down by midcap- and small-cap stocks, MarketSmith India’s IND 47 index, our proprietary list of top 47 stocks in chart and fundamental characteristics, lost 1.9%.
The distribution day count which indicates institutional selling in recent times elevated to five on the Sensex and six on the Nifty. However, both the key indices are still trading near their all-time highs. Hence, the market condition remains in a Confirmed Uptrend. The broader market stays in a Downtrend.
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.
To Read Detailed Reports including Stock Recommendations, Idea Lists, Evaluate Stocks etc. Subscribe to MarketSmith India.