Today’s Action:
Benchmark indices extended their losses from yesterday, due to global geopolitical tensions and uncertainty following SEBI’s action against alleged shell companies. Broader markets underperformed the headline indices.
Daily Market Review
The benchmark indices had a week session, with the key indices trading in red throughout the day. The key indices opened in red, as the Asian markets and the U.S. stock futures were subdued after an escalation in tensions on the Korean peninsula. North Korea has warned that it is “carefully examining” plans for a missile strike on the U.S. Pacific territory of Guam.
Back home, the SEBI’s move to place trading curbs on 331 scrips further dampened market sentiment, which resulted in the market weakness from yesterday, spilling into today’s session. Of the 331 stocks identified by the market regulator, 169 had been already suspended from trading for various violations.
Today, the Nifty opened lower at 9,961.15 and topped out at 9,969.80. The index started losing ground in the morning and reached an intraday low of 9,893.05, before finally settling at 9,908.05, down 0.71% from yesterday’s closing price. Similarly, the BSE Sensex, after opening lower at 31,926.14, hit an intraday high of 31,967.28. The index sold off as the day progressed, reaching an intraday low of 31,731.91, and closed for the day at 31,797.84, down 216.35 points or 0.68% from yesterday’s close.
The market breadth, indicating the overall health of the market, was tilted towards the losers in today’s session. On the NSE, only 250 stocks advanced, compared with 1,231 stocks declining, and 35 stocks remaining unchanged.
The broader markets underperformed the headline indices as the Nifty Midcap and Smallcap indices lost 1.67% and 1.78%, respectively, in today’s session.
Today, the MarketSmith India IND 47 Index, which lists the top 47 stocks in chart on fundamental characteristics, lost 1.99%.
On the sectoral front, all sectors ended in red. The Nifty Pharma, Auto, and Media indices bore the maximum brunt of the market weakness, with declines of 3.94%, 1.73%, and 1.09%, respectively.
In a move that is set to intensify the competition in the credit cards segment, the country’s largest private sector lender, ICICI Bank, has launched instant digital credit cards for savings account customers. The credit limit for the facility has been set at INR 4 lakh based on pre-checked credit bureau scores. As of June, ICICI Bank’s number of outstanding credit cards stood at 43.46 lakh, below HDFC Bank and State Bank of India.
Yesterday, Axis Bank reduced the interest rate on savings accounts by 50 basis points to 3.5% for balances up to INR 50 lakh. The Bank will continue to pay 4% interest on deposits of above INR 50 lakh. The new rates will be effective from today. Axis Bank is the fourth lender to reduce the interest rate after market leader State Bank of India (SBI) reduced the interest rate on savings account.
Today, the key indices escaped a distribution day due to lower trading volume, compared with yesterday’s session. The distribution day count for the Nifty and the Sensex currently stand at 3.0 and 4.0, respectively. The Indian market is currently 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.
To Read Detailed Reports including Stock Recommendations, Idea Lists, Evaluate Stocks etc. Subscribe to MarketSmith India.
Disclaimer: William O’Neil India Investment Adviser division, is one of the divisions of William O’Neil India Private Limited, which is a company incorporated under the Companies Act 1956. William O’Neil India Investment Adviser division is a registered investment advisor with the Securities and Exchange Board of India and through its online product, MarketSmith India intends to provide quality equity research material and information to its customers. The investments discussed or recommended through MarketSmith India may not be suitable for all investors and hence, you must rely on your own examination and judgement of the stock and company before making investment decisions. Data provided through MarketSmith India is for information purposes only and should not be construed as an offer or solicitation of an offer to buy or sell any securities. Information and discussions made available through MarketSmith India contain forward looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. William O’Neil India Investment Adviser division or its employees / directors or any of its affiliates are not responsible for any losses that may arise to any person who has made investments based on the contents of this document. Past performance never guarantees future results. Investment in equities are subject to market risks and despite the best efforts to provide market leading research, William O’Neil India would like to exhort its users to acknowledge and fully understand the risks involved which might include but not limited to loss of both principal and income. Data and content provided through MarketSmith India is to be consumed only by the intended recipient and must not be redistributed any further.
Registered office address: William O’Neil India, Technomark Building, A-4, NGEF Ancillary Industrial Estate, Graphite India Road, Mahadevapura, Whitefield, Bangalore 560048, Phone: + 91 80 67453802, Fax: + 91 80 6745381, Website: http://www.williamoneil.com/india/, For investor queries:queries@marketsmithindia.com; For grievances: grievances@marketsmithindia.com; For compliance officer:compliance@marketsmithindia.com, Corporate Identity Number: U74999KA2012FTC066881, Investment Adviser SEBI Regn. Nos: INA200005125 valid till 11 July 2021.