Daily Big Picture – Sensex Notches up 32K in its Record-breaking Streak; Nifty Strides Towards 9,900 Mark

MarketSmith India_William Oneil IndiaToday’s Action:

The key indices continue their winning streak with significant gains, for a fourth straight session. Broader markets underperform frontline composites.

Daily Market Review

In today’s trading session, the benchmark indices recorded new all-time highs, yet again. The Sensex and the Nifty started significantly higher and build on the gains as the session progressed. The Sensex claimed 32,000 mark for the first time, while the Nifty inched closer to the 9,900 mark.

The Nifty started the session at 9,856.25. The index traded in a range of 9,856.25 – 9,896.45, before settling at a new closing high of 9,891.70, up 0.77% from yesterday’s closing price. The BSE Sensex, after opening higher at 31,897.34, touched an all-time high of 32,087.62. It maintained its gain with an intraday low of 31,896.23. The Sensex finally settled at 32,037.38, up 0.73% from the previous close.

Broader markets lagged momentum in comparison to the key indices, as the Nifty Midcap and Smallcap indices ended the day with small gains of 0.30% and 0.12%, respectively. A similar state was observed from the market breadth, with 1,293 stocks advancing on the BSE, compared to 1,428 stocks declining and 164 stocks remained unchanged.

The MarketSmith India IND 47 Index, which lists the top 47 stocks in chart on fundamental characteristics, added 0.32%, in today’s trading session.

All the sectoral indices participated in today’s market rally, as they all ended the session in the green. The top three gainers of the day were the Nifty FMCG (+1.80%), Media (+1.11%) and Pvt Banks (+1.04%) indices.

In economic news, the country’s Consumer Price Index inflation for the month of June fell to 1.54%, a record low since 1999, compared to 2.18% in May. The latest inflation figure suggests poor demand and weak economic activity. Retail inflation dipped below RBI’s stipulated floor rate of 2%, strongly indicating at a probable interest rate cut in the next month’s monetary policy review. However, the effect of GST on the economy may be another factor that the central bank will consider in its meeting.

The Q1 FY 2018 earnings season is all set to intensify, starting with the result announcements by IT bigwigs TCS and Infosys, scheduled for today and tomorrow, respectively. The IT sector has come under pressure in the recent past due to growing concerns about the U.S. visa issues.

Both the benchmark indices observed healthy trading volumes, indicating stock accumulation. The distribution day count for the indices remains in check at 1.0, and the Indian market condition stays put in a Confirmed Uptrend.

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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