MARKET PULSE
Status: Confirmed Uptrend
Daily Market Review
The key indices along with the Nifty Midcap opened at their record highs and advanced their gains from the morning session.
With a stellar opening at 9,461, the Nifty continued its upward momentum to end the session at 9,512.25, gaining 0.71% or 60.85 points during the course. Hitting 9,500 levels for the first time in history, the index traded in a wide range of 9456.35 – 9517.20.
After opening at a fresh high of 30391.48, the Sensex closed at 30,582.60, adding a handsome gain of 0.86% or 228 points to its rally. The index’s trading range observed for the day was 30,591.55 – 30,363.37.
The markets trended upwards on higher volumes as compared to yesterday’s session.
The broader markets could not match the pace with the key indices, and underperformed them. The Nifty Midcap made a fresh new high of 18,511.55, closing at a gain of 0.50%, whereas, the Nifty Smallcap advanced higher by 0.70%.
The William O’Neil IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics gained 0.41% in today’s trading session.
Moving onto sectoral performances, the top three gainers of the day were the Nifty PSU Bank, IT and Auto closing at a gain of 2.38%, 1.18%, and 1.11% respectively. The only three sectors to close in red were Nifty Metal (-0.48%), Nifty Media (-0.29%), and Nifty Pharma (-0.06%).
India’s imports rose 49.1% in April compared to 45.3% in March, while export growth rate slowed down to 19.8% in April compared to 27.6% in March. The trade deficit stood at $13.25 billion for April 2017. The imports were driven by the increase in the purchase of imported gold (up 211% y/y to $3.57B), oil (up 30.1% y/y to $7.36B), and electronic goods (up 74% y/y to $4.44B). Exports were driven by a 48.8% y/y rise in the shipment of petroleum products to $2.95 billion; engineering goods increased 28.2% y/y to $6.11 billion, and gems and jewellery exports rising 15% y/y to $3.97 billion.
Despite the demonetisation blues, from 2016 to 2017, India’s exports grew at its fastest pace in five years by 4.7% to $274.65 billion. The Government of India has targeted to improve India’s share in global exports to 5% by 2020, from the current 1.6%. Owing to the positive macro data, the Rupee hit a fresh 21-month high against the U.S. Dollar. The markets cheered the macroeconomic data, with the Sensex and the Nifty scaling new highs.
On Monday, the U.S. crude prices surged more than 3% to trade above $49 a barrel on the back of an announcement by Russia and Saudi Arabia to continue the oil production cuts through March 2018.
The Indian arm of Vodafone’s revenues marginally declined 0.5% in FY 2017 to INR 42,956 crore, despite the launch of Jio. Vodafone added 10 million broadband users in FY 2017 taking its total mobile broadband user base to 37.7 million. Vodafone’s data revenues grew 5% y/y. As of December 2016, it recorded a 0.7% gain in revenue market share.
The Indian market outlook stays at a Confirmed Uptrend as the Nifty and the Sensex are trading close to all-time highs with a distribution count of 2.0 and 4.0, respectively. Today, one Distribution Day each from the Sensex and the Nifty expired.
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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