Daily Big Picture – Key Indices Trade Flat; Nifty hits 10K Mount but failed to hold momentum

DailyBigPicture-MarketSmithIndia-WilliamOneilIndiaToday’s Action:

After scaling to all-time highs on intraday the benchmark indices failed to hold the momentum and pared opening gains to settle in red.

Daily Market Review

The Nifty trims after reaching the 10K mark as investors exhibits some caution ahead of major earnings, which is due later today and the upcoming U.S. Federal Reserve meeting.

 The Nifty made a historic run today after opening at 10,010.55. However, it couldn’t hold to its 10k mark and made an intraday low of INR 9,949.10, the index finally closed flat at 9,964.55, down 0.02% from yesterday’s trading session. The Sensex opened at 32,250.71 points and lost 0.05% in today’s trading session. After trading in the range of 32,196.86- 32,374.30 it finally settled at 32,228.27.

 The market breadth, indicating the overall health of the market, was in favour of the losers. On the NSE, 621 stocks advanced, compared with 851 stocks declining, and 59 stocks remaining unchanged.

 The MarketSmith India IND 47 Index, which lists the top 47 stocks in chart on fundamental characteristics, gained 0.17% in today’s trading session. The broader indices followed a divergent trend today, the Nifty Midcap and the Smallcap both surged 0.40% and 0.11% in today’s trading session. On the sectoral front, the top gainers were Nifty Metal, PSU Bank, and Bank gaining 1.26%, 0.73%, and 0.41%, respectively. While the Nifty Media, Pharma, and  Energy were the top three losers after they shed 1.14%, 0.50% and 0.43%, respectively in today’s trading session.

 The global investors remained subdued as they awaited the Federal Reserve two days meeting for clues on monetary policy and its decision on long-pending balance sheet reduction plan.

 In the Corporate talk, Cyberinc, a subsidiary of Aurionpro solutions, has signed a global OEM partnership agreement with Hewlett Packard Enterprises for powering Isla, its advanced web malware isolation systems. As a result of this news the shares of Aurionpro solutions increased more than 18% intraday.

 The Competition Commission of India (CCI) approved the merger of Idea cellular with Vodafone India. This deal will create the country’s largest mobile phone operator worth more than $23B with a 35% market share. The shares of Idea cellular surged 6.43% today.

 The market observed another stellar debut today after Salasar Techno Engineering was listed at INR 259, a premium of 140% against its IPO price of INR 108.

 Cadila  Healthcare stock soared more than 3% intraday as the company received the final nod from the U.S. FDA for Mesalamine delayed-release tablets in the strength of 800 mg. Another Company to receive the U.S. FDA approval was Unichem labs for Losartan Potassium, a drug that treats hypertension.

 Tablez India, the retail segment of the hypermarket retailer Lulu group, is expected to launch brands such as Toys ‘R’ Us and Babies ‘R’ Us. It plans to open 15 new stores in India to create its presence in every retail category.

 SEBI is forming a nodal agency to reduce the time taken by the regulatory authorities to approve the proposed merger and acquisitions of listed and non-listed companies. As per the current norms, any mergers and acquisition deals need approval from respective regulators and the competition commission. At times it takes several months in getting the approval and due to this time lag many deals need to be reworked, which further delays the process.

Today, the Nifty observed a higher trading volume, while the Sensex witnessed a lower trading volume compared with yesterday’s trading session. The distribution day count for both the indices currently stands at 2.0, and the Indian market remains 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.

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