Today’s Action:
Key indices close positive in a choppy session; Nifty manages to hold 10,100 level.
Daily Market Review:
The market witnessed a volatile trading session today, before the Nifty and the Sensex snapped their losing streaks to end with small gains.
Today, the Nifty and the Sensex managed to close in the green with nominal gains of 0.30% and 0.22%, respectively. The IT stocks and HDFC Bank lifted the indices to positive territory.
Broader indices marginally outperformed the frontline indices, with the Nifty Midcap and Smallcap gaining 0.38% and 0.26%, respectively.
In the recent times, global trade war fears, domestic political tensions, and continuous FII selling have created a wall of worry, due to which market bulls are finding it tough to climb.
The Telugu Desam Party (TDP) members protested today in the Parliament premises demanding a special category status for Andhra Pradesh. During the week, market participants will keep a close eye on relating parliamentary developments after the party moved a no-confidence motion against the NDA government.
Asian markets slipped today as investors dumped technology shares after Facebook came under stiffer regulation, relating to allowing improper access to user data. Also, the investors are following a cautionary stance, as the Fed is likely to hike the U.S. interest rates at its upcoming two-day meeting on March 20-21.
In today’s action, a majority of sectoral indices managed to close in the green. The Nifty IT (+1.5%) was the top gainer in today’s trade followed by Pharma (+0.8%), Auto (+0.6%), and FMCG (+0.4%). The losers were Realty (-0.4%), Private Bank (-0.4%), Metal (-0.3%), and Bank (-0.3%).
Our proprietary list of leading stocks, the MarketSmith India IND 47 index, fell in today’s trading session, losing 0.2%.
The advance-decline ratio remained in favor of losers once again. Of the 1,597 stocks traded on NSE, 569 gained, 970 declined, and 58 remained unchanged.
With today’s session, the market outlook remains unchanged at Downtrend. If the key indices manage to hold above today’s low for three straight sessions, we will consider moving the Indian market to a Rally Attempt.
Although the Nifty managed to hold 10,100 mark today, the levels of 10,000 will be watched closely by market participants. A breach of that level could further dampen investor sentiment. If 10,000 is breached, the next crucial level to watch out for will be 9,700.
Current Outlook:
– Avoid fresh buys, do not average down.
– Protect profits and cut losses.
– Build a watchlist.
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