Today’s Action:
Large-cap stocks lead the rally; broader market bucks the trend.
Daily Market Review:
Major indices continued their bullish momentum as strong global cues and an overnight slump in crude oil prices boosted the market sentiment.
Crude oil prices plunged 6.9% to $73.40 on Wednesday as Libya resolved major disruption to its crude oil exports. It has been able to reopen four export terminals that were closed since June. The fall came despite the U.S. government reported a decrease of 12.6 million barrels in their crude oil inventory.
Following the decline in the commodity, the Nifty jumped 0.7% and the Sensex 0.8%. As a result, the Sensex hit an all-time high and the Nifty closed above the 11,000 mark.
Today’s rally was mainly led by Reliance Industries, which jumped 4.3% to scale a new high today. It became the second Indian company after Tata Consultancy Services to enter the $100B market cap club.
Weakness was spotted in the broader market as the Nifty Midcap lost 0.4% and the Smallcap gave away 0.2% .
The overall market breadth remained in favor of decliners with losers outnumbering gainers in a ratio of 9:7 on the NSE.
On the sectoral front, there was a divergent trend. Among all gainers, Nifty Energy (+2.7%), PSU Bank (+1.1%), and Financial Services (+1%) came on top. On the downside, Nifty Realty (-1%), Media (-1%), and Auto (-0.8%) were the laggards.
MarketSmith India’s IND 47 index, our proprietary list of top 47 stocks in chart and fundamental characteristics, lost 0.2%.
Talking about market direction, the distribution day count remains unchanged at four on the Sensex and five on the Nifty. The market condition is in a Confirmed Uptrend.
On the macro front, the Indian Government will announce industrial production data for May and CPI data for June at around 5:30 PM today.
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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