Daily Big Picture – Key Indices Observe Stalling Day; Broader Markets Under Pressure


Today’s Action:

The Nifty and the Sensex are on a spree of clocking new highs in three out of the past four trading sessions. Ending nearly flat of high trading volume, the key composites observed a stalling day.

Daily Market Review

The key benchmarks extended their gains to hit all-time highs in today’s session. However, by the end of the day, they consolidated and erased their morning gains to end flat. The broader markets closed at a decent gain, but continue to remain under pressure, trading slightly below their 50-day moving average.

The Nifty opened the day at a record high of 9,636.55, and traded range bound to end flat at -0.03%. Closing the day at 9,621.2, the index traded in a narrow range of 9,609.25 – 9,649.60. The index continues to trade nearly 3.6% above its 50-day moving average.

The Sensex opened 63 points or 0.2% up, at 31,222.51 to tick another all-time high of 31,255.28 during the day. However, amidst consolidation, it lost the momentum and ended the day flat at 31,145.80. The index is currently ~4% above its 50-day moving average.

High volumes were observed on both the indices, with minimal change in the percentage gained/lost, marking a stalling day. Stalling day is a subtle form of Distribution Day.

The Nifty Midcap and Smallcap added gains of 0.57% and 1.07%, respectively. Broader markets continue to trade below their 50-day moving average, and well below their off highs and remain under pressure.

The MarketSmith India IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics, closed at a decent gain of 0.74% in today’s trading session, outperforming the benchmark.

On the sectoral front, there was a mixed reaction on the street, however, a majority of the sectors closed positive. The top three gainers of the day were Nifty Realty, Auto, and Private Bank closing at a gain of 1.13%, 0.64%, and 0.62%, respectively. On the contrary, the top three sectors to close in red were Nifty Metal (-1.53%), IT (-0.56%), and Media (-0.52%).

The U.S. consumer spending grew at its slowest pace in more than seven years in the first quarter of 2017. The U.S. economy showed signs of recovery, with the consumer spending, which accounts for about 70% of the GDP, increasing 0.4% in April 2017. The annual y/y consumer spending rate is estimated to be approximately 3%.

RBI Deputy Governor, S.S. Mundra, stated that on the back of countrywide Aadhar enrollments, the RBI could look into the implementation of bank account portability in the near future. The RBI will soon form and divulge rules to limit the liabilities of consumers for unauthorized electronic transactions in their bank accounts.

The Indian market outlook stays at Confirmed Uptrend as the Nifty and the Sensex are trading near their all-time highs. The distribution day count stands at 1.0 and 4.0, for the Nifty and the Sensex, respectively.

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