Today’s Action:
Key indices erased their early gains, broader market bucks the trend.
Daily Market Review:
After Tuesday’s rally, benchmark indices continue their bullish momentum by opening on a positive note. But, late day selling played the spoilsport and erased most of their gains.
In the end, the Nifty was down 0.02% whereas the Sensex posted a minuscule gain of 0.1%. Earlier in the day, the Sensex hit a record high while the Nifty climbed 11,150 level. This is the third consecutive trading session for the Sensex to touch a new high.
In the broader market, the Nifty Midcap and Smallcap fared better as they were up 0.1% and 0.4%, respectively.
The market breadth was also muted in today’s session. Out of the 2,066 stocks traded on the NSE, 921 advanced, 812 declined, and 333 stocks remain unchanged.
Eight out of 12 sectors on the NSE were in the red with Nifty Realty (-1.4%) topping the list. On the other hand, Nifty PSU Bank had a solid outing as the index was up 1.4%.
MarketSmith India’s IND 47 index, our proprietary list of top 47 stocks in chart and fundamental characteristics, outperformed the key indices as it gained 0.3%.
Coming to the overall market direction, both the Sensex and Nifty shed one distribution day as the distribution on June 28 became irrelevant with the indices trading 5% higher. The distribution day count now stands at three on the Sensex and four on the Nifty. However, 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.
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