Markets Resume Rally; Nifty Scales All-time High

Today’s action:

Major indices extend gains. The broader indices continue their positive run, but underperform key indices.

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.

Daily Market Review

The Indian market tracked strength from its global peers, many of which scaled fresh highs, based on positive European cues. The frontline indices extended their rally with significant gains in today’s session as well. The Sensex inched closer to the 30k mark, while the Nifty peaked to its all-time highs crossing the 9,300 mark for the first time. Further, earnings surprises from major companies aided the market momentum.
The Nifty finished the day near its all-time high, gaining 0.96% (+88.65 points) and ended at 9,306.60. It opened at 9,273.05. The day’s range was observed at 9,250.35 – 9,309.20.
The Sensex put on a good show with gains of 0.97% (+287.40 points) and ended at 29,943.24. The index opened at 29,825.14. It traded in a range of 29,780.84 – 29,961.82.
The Nifty observed a higher trading volume compared to the previous trading session, while the Sensex traded in line with the previous trading day’s volume.
The broader indices continued their winning momentum with the Nifty Midcap and Smallcap indices gaining 0.85% and 0.79%, respectively. The indices extended their all-time highs.
The William O’Neil IND 47 Index, which lists the top 47 stocks in chart and fundamentals, underperformed the benchmark indices as it gained 0.66%, in today’s session.
In a rare display, all the sector composites closed the day with good increments. The Nifty FMCG, Realty, Financial Services, Auto, Energy and PVT Bank indices gained over 1% to top the sectoral performance chart.
Market spotlight in today’s session was on Reliance Industries, which reported estimate-beating Q4 FY 2017 results on Monday. In the quarter ending March, net profit of the Company jumped 12.3%, y/y, to INR 8,046 crore, backed by good margins from the refining and petrochemical segments. Solid cash generation by these segments enabled the Company in funding its telecom venture, Reliance Jio. As a result of good earnings, the stock gained over 1% today, making it the most valued Indian company by market capitalization, replacing Tata Consultancy Services from the top slot.
As the markets resume their uptrend after a brief period of consolidation, favourable domestic and global cues, and positive earnings season are key to carry the momentum forward. The distribution day count for the Sensex and the Nifty remains unchanged at 5.0 and 4.0, respectively. Further, the current status of a Confirmed Uptrend is apt for the Indian equity markets.

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