Today’s Action:
Key indices snap their best run over past three years but escape distribution day.
Daily Market Review:
Bears returned to the scene, as the Indian equity market snapped its nine-session winning streak in a highly volatile trading session today.
Tracking strong global cues, the benchmark indices accumulated decent gains in the first half, but succumbed to profit booking in the final hour of the session.
In the end, Nifty and Sensex closed lower by 0.2% each but on lower volume as compared to the previous session. As a result, both the indices escaped distribution day.
Profit booking was not limited to large caps, as Nifty Midcap and Smallcap lost 0.1% and 0.5%, respectively.
On the sectoral front, Nifty FMCG (+1.7%), Media (+1.4%) and Realty (+0.6%) had a great day, while the Nifty PSU Bank (-1.1%), Private Bank (-0.9%) and Financial Services (-0.7%) indices witnessed selling pressure.
Market breadth turned in favour of losers today. Of the 1,657 stocks traded on the NSE, 1013 declined, 576 advanced, and 68 remained unchanged.
Our proprietary list of leading stocks, the MarketSmithIndia IND 47 index declined 0.2% in today’s session.
With regards to market direction, today’s fall does not warrant any change in the Indian market outlook of Confirmed Uptrend. Both the benchmark indices are comfortably trading above their key support levels of 50- and 200-DMA.
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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