Daily Big Picture – Volatility Plagues Market; Nifty Ends with a Minor Gain

Today’s Action:

Late selling hits market; smallcap index remains weak.

Daily Market Review:

Volatility was the name of the game in today’s session, as the frontline indices chalked up small gains after a poor start.

The Indian stock market changed its course after it opened lower, but failed to keep the momentum as profit booking prevailed in the final hour of the trade.

In the end, both the Nifty and the Sensex closed the day with a miniscule gain of 0.06% each.

Broader market failed to enthuse investors as the Nifty Midcap and Nifty Smallcap ended on a negative note with a loss of 0.2% and 0.9% respectively.

The overall market breadth remained bearish as losers outnumbered gainers. Out of 2,062 stocks traded on the NSE, 517 advanced, 1,196 declined and 349 remained unchanged.

On the sectoral front, there was a divergent trend. Among all gainers, Nifty FMCG (+1%), IT (+0.6%), and Media (+0.2%) came on top. On the downside, Nifty Auto (-0.5%), Pharma (-0.4%), and Metal (-0.4%) were the laggards.

Dragged down by midcap and small cap stocks, MarketSmith India IND 47 index, our proprietary list of top 47 stocks in chart and fundamental characteristics, lost 1%.

Talking about market direction, the distribution day count remains unchanged at three on the Nifty and four on the Sensex. With frontline indices continuing to trade in a broader range, the market condition remains unchanged at an Uptrend Under Pressure.

Both the key indices are only 3-4% away from their all-time highs. For the Nifty, the previous high of 10,929.20 serves as a crucial resistance zone. However, on the downside, the index seems to have strong support at its 50-DMA. The index closed 0.8% above its 50-day line.

Current Outlook:

– Be cautious with new purchases.

– Form a defensive game plan for your portfolio.

– Stay disciplined and exercise sound sell rules.

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