Daily Big Picture – Stock Indexes Gallop to New Highs

MarketSmith India_William Oneil India

Today’s Action:

The key indices opened higher today and extended their gains, both the indices made all time highs and registered their highest closing levels ever.

Daily Market Review

The benchmark indices continue its winning streak after both the Nifty and the Sensex made an all-time high today. The Nifty is close to the 10K peak due to the positive earnings quarter.

The Nifty opened higher today at 9,936.80. After touching an intraday low of 9,919.60, the index gained momentum, advancing to an intraday high of 9,982.05, before finally settling at 9,966.40, up 0.52% from last Friday’s closing price. The BSE Sensex, after opening higher at 32,100.22, reached an intraday low of 32,058.33. The index, however, picked up pace as the day progressed, and touched an intraday high of 32,320.86. The index finally settled at 32,245.87, gaining 0.68% from last Friday’s close.

The market breadth, indicating the overall health of the market, was in favor of the losers, even as the headline indices scaled new highs in today’s session. On the NSE, 706 stocks advanced, compared with 774 stocks declining, and 53 stocks remaining unchanged.

The broader indices followed the frontline indices, the Nifty Midcap and the Smallcap both posted an increment of 0.23% and 0.53%, respectively, in today’s trading session.

The MarketSmith India IND 47 Index, which lists the top 47 stocks in chart on fundamental characteristics, lost 0.05% in today’s trading session.

On the sectoral front, the breadth was in favor of the winners. Among the gainers, the Nifty PSU Bank, IT, and FMCG Indices stood out with gains of 1.50%, 1.05%, and 0.92%, respectively. The only losers were the Nifty Pharma, Metal, and Media indices losing 0.72%, 0.49%, and 0.41%, respectively.

The cabinet has approved the sale of the government’s stake in Air India. In the much-awaited decision to decide the fate of India’s third largest domestic airline, the Modi-led team of ministers decided to set up a committee to explore various alternatives and choose the best disinvestment options. Earlier, Indigo and Tata Sons has expressed its interest in buying the Company’s stake and as per the latest reports, the Kohlberg and Kravis Roberts (KKR) and Warbug Pincus have separately sought details of the proposed disinvestment.

Ashok Leyland filed a press release today with the BSE, where it has confirmed that it has received the order of 3,019 buses from KSRTC, amounting to INR 650 crores. The order is expected to be executed in the current financial year.

After the cabinet gave a green signal for the approval of the strategic sale of the government’s existing share in HPCL to ONGC earlier this month, the Cabinet Committee on Economic Affairs have set up a three-member ministerial panel, headed by Finance Minister, Arun Jaitley, to oversee and guide the sale. This acquisition is expected to create several operational synergies for ONGC.

Coal India has classified all its mines in the high, moderate, and low risk categories and has informed the parliament about its decision to shut down all mines falling under the high-risk category as a safety concern. Giving top most priority to the safety, the government has made it mandatory for all coal mines to conduct an annual safety audit.

From the results corner, the HDFC bank declared its Q1 FY 2018 results today. The net interest income grew 20.4%, while the NPA rose due to farm loan waiver. The stock gained 2.13% in today’s trading session.

Today, the Nifty and the Sensex witnessed lower trading volume compared with Friday’s trading session. The distribution day count for both the indices currently stands at 2.0, and the Indian market remains 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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