Benchmark indices post losses in a volatile session; escape distribution day.
Daily Market Review:
The Indian stock market snapped its three-day winning streak amid high volatility.
Despite weak global cues, the benchmark indices got off to a decent start. However, early-session gains were erased as rupee depreciation hurted market sentiment.
Continuous foreign outflows and rising crude oil prices in the recent times have weighed on the Indian currency.
Trading volumes were lower on both major indices and hence the market escaped adding a distribution day.
In the broader market, the Nifty Midcap and Smallcap followed suit and slipped 0.3% and 0.4%, respectively.
Market breadth was negative as losers outnumbered gainers with a 6-5 margin on NSE.
On the sectoral front, banking stocks faced profit-booking along with Nifty Media (-1.7%) and Pharma (-1%). However, Nifty IT (+0.5%) and Auto (+0.4%) had a decent outing.
The MarketSmith India IND 47 index, our proprietary list of the top 47 stocks in chart and fundamental characteristics, declined 0.3% today.
We continue to see divergence in the broader market. Nifty Smallcap had recorded a follow-through day on May 25 (Friday) and is currently in a Confirmed Uptrend. Nifty Midcap managed to hold above its May 24 low for three straight sessions and is currently in a Rally Attempt.
– Be cautious with new purchases.
– Form a defensive game plan for your portfolio.
– Stay disciplined and exercise sound sell rules .
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