Today’s Action:
Indices rise to new highs, Nifty sheds one distribution day
Daily Market Review:
The Indian benchmark indices continue their dream run to attain a new high. Both the Nifty and the Sensex displayed a great strength to top the crucial level of 11,000 and 36,000 for the first time. Positive cues from Asian markets and ending of the US government shutdown lifted the market sentiment.
The Nifty led with a 1% jump to close at 11,083 whereas the Sensex added 0.96% to end the day at 36,139. The tremendous increase was due to strong accumulation observed in the metal stocks, which gained around 4%.
Broader indices blocked the bears for the third straight session as the Nifty Midcap and Small cap indices pocketed gains of 1.04% and 0.30%, respectively.
From the sectoral point of view, almost all the sector indices traded higher, barring the Nifty Media that lost 0.25%. After metal, the most performing indices were: Nifty PSU Bank (+3.97%), Bank (+1.29%) and IT (+1.19%).
Leading stocks continue to sprint, as MarketSmith India IND 47, our proprietary list of strong fundamental and technical stocks extend its gains by 0.94%.
On the contrary, the market breadth favors decliners. On NSE, 864 shares advanced against a decline of 923 shares. A total of 61 shares remain unchanged.
After a strong 2017 for stocks, there is no sign of pullback. The {distribution day count} for both the benchmark indices now stands at one. Benchmark indices are reaching new milestones and distribution count is low; hence, we are comfortable in keeping the Indian market status at a Confirmed Uptrend.
Meanwhile, the International Monetary Fund (IMF) revised upward its forecast by 0.2% for world economic growth in 2018 and 2019, to 3.9%. The IMF also estimated the global output to grow by 3.7% in 2017, an increase of 0.1% point faster than anticipated.
Current Outlook:
– Market environment conducive for new 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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