Today’s Action:
Nifty hovers around 10,700 level in a volatile session.
Daily Market Review:
Investor sentiment oscillated between distress and relief, as key indices remained highly volatile in today’s session.
The stock market extended its rebound in early morning trade amid strong Asian cues. But, the frontline indices lost steam to end flat amid high volatility. Both Nifty and Sensex ended today’s choppy session above the break-even line and gained 0.02%.
Overseas, stocks in the U.S. market did well on Monday but fell off the peak as President Donald Trump tweeted that he would make an announcement whether the U.S. would decertify 2015 Iran deal on Tuesday. Abandoning the Iran deal would limit Iranian oil in the world’s supply, as Iran gets reimposed on oil-related sanctions which were waived off on 2015.
Coming back to home, broader indices showed divergence as the Nifty Smallcap ended the day with a modest gain of 0.6% while Nifty Midcap lost 0.1%.
Moving to the sectoral front, Nifty PSU Bank gained the most as the index posted a 1.3% gain. Other sectors such as Nifty Private Bank (+1.2%) and Realty (+1.1%) accumulated decent gains. On the flip side, Nifty Media (-0.5%), Auto (-0.4%), and Pharma (-0.2%) ended lower.
With regards to market breadth, decliners led advancers by an 11:8 ratio on NSE.
Our proprietary list of leading stocks, the MarketSmith India IND 47 index outperformed the benchmark indices with a 0.3% rise in today’s trade.
The distribution count remains unchanged at two for Nifty and one for Sensex. Both the indices are still trading comfortably above their key support levels of 50- and 200-DMA. The market status stays put 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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