Today’s Action:
Benchmark indices extend their rally, broader market outshines.
Daily Market Review:
Volatility continued to plague the Indian market as frontline indices bounced back strongly from negative territory.
Amid strong Asian cues, benchmark indices opened on a positive note, but erased all its gains to dive lower. However, late buying pushed the Nifty and the Sensex higher by 0.5% and 0.3%, respectively. The Sensex touched a record high while the Nifty closed above 11,100 level.
In the broader market, the Nifty Midcap and Smallcap outperformed their larger peers with gains of 1.3% and 2.3%, respectively.
The market breadth was solid as gainers outnumbered losers by a huge margin of 8:2 on the NSE. Out of the 2,068 stocks traded in NSE, 1392 advanced and 345 declined.
Strong buying in the metal and realty space supported the gains as both the indices surged 3% and 2.5%, respectively. However, the gains were limited due to dull performance in the Nifty Private Bank (-0.1%) and IT (-0.1%).
MarketSmith India’s IND 47 index, our proprietary list of top 47 stocks in chart and fundamental characteristics, gained 0.7%.
Today, both the Sensex and the Nifty shed one distribution day due to aging, bringing the distribution day count down to four and five, respectively. With the Sensex touching a new high today and the Nifty within touching distance of making an all-time high, the market direction remains unchanged at 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.
To Read Detailed Reports including Stock Recommendations, Idea Lists, Evaluate Stocks etc. Subscribe to MarketSmith India.