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. Indexes traded flat in the first half, but made a bullish reversal, and closed near session highs. Finishing on a positive note, the key indices posted small gains in today’s session. The broader markets showed weakness and closed in red.
The Nifty rallied by 0.14%, closing at a record high for the second session in a row on the back of gains in metal and auto stocks. The index opened at 9,517.60 and managed to close above 9500 levels, to end the day at 9,525.75. Making another intraday high, the index traded in the range of 9,486.10 – 9,532.60.
After opening at a fresh high of 30,616.53, the Sensex gradually moved up and hit a fresh intraday high of 30,692.45. Gaining 0.25% or 76 points, the index closed at 30,658.77. The index’s trading range observed for the day was 30,519.14 – 30,692.45.
The markets trended upwards on higher volumes as compared to yesterday’s session. The broader markets lost the steam and underperformed the major markets. The Nifty Midcap and the Nifty Smallcap gave up 0.26% and 0.10%, respectively.
The William O’Neil IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics gained 0.24% in today’s trading session, outperforming the Nifty’s performance.
Moving onto sectoral performances, the top three gainers of the day were the Nifty Metal,
Auto and Private Bank closing at a gain of 2.25%, 0.68%, and 0.19% respectively. The only other sector to close in green was the Nifty Bank (0.03%). All other sectors witnessed weakness and closed in negative zone today. The top three underperformers were the Nifty PSU Bank (-0.61%), FMCG (-0.43%), and IT (-0.23%).
Tata Steel soared almost 9% after the Company released its Q4 FY 2017 earnings. Its consolidated net loss more than halved to INR 1,168 crore, while the net revenues increased 30% y/y. The Indian segment, which contributes 48% of the total revenues, reported an average realization of Rs 53,300 per ton, up 23% y/y. The market expects the demand and price realization to improve further.
The Indian market outlook stays at a Confirmed Uptrend as the Nifty and the Sensex are trading at all-time highs with a distribution count of 2.0 and 4.0, respectively.
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 Indiaintends 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.