Today’s Action:
Key composites score decent gains; broader indices follow suit.
Daily Market Review:
Amid an improved global market sentiment, bears took a breather after causing a havoc in yesterday’s session.
Market optimists heaved a sigh of relief as frontline indices posted decent gains, with the Nifty and the Sensex rising 0.6% and 0.7%, respectively.
Broader market indices also did well. The Nifty Midcap and Smallcap advanced 0.5% and 0.6%, respectively.
The overall market breadth was healthy with gainers outnumbering losers. Out of 2,052 stocks traded on the NSE, 864 advanced, 843 declined and 345 remained unchanged.
On the sectoral front, all indices closed in positive territory barring Nifty FMCG, IT and PSU Bank. Among the gainers, Nifty Private Bank (+1.2%), Realty (+1.1%), and Financial Services (+1%) emerged on top.
Led by strength in select lower cap stocks, the MarketSmith India IND 47 index, our proprietary list of leading stocks, gained 0.5%.
Aviation stocks came under selling pressure after India’s air passenger traffic growth slowed down to 16.5% in May, the slowest pace of growth in four years.
With frontline indices continuing to trade in a broader range, the market condition remains unchanged at Uptrend Under Pressure. The distribution day count also remains unchanged at three on the Nifty and four on the Sensex. On the upside, the previous high of 10,929.20 serves as a crucial resistance zone for the Nifty. On the downside, the index seems to have strong support at its 50-DMA.
While the broader market indices are yet to test their previous lows, both the Nifty Midcap and Smallcap have accumulated huge overhead resistance and are down 14.8% and 22.4% from their respective all-time highs.
Current Outlook:
– Be cautious with new purchases.
– Form a defensive game plan for your portfolio.
– Stay disciplined and exercise sound sell rules.
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