Today’s Action:
Geopolitical tensions weigh on the benchmark indices. Recovery in the second half trims losses.
Daily Market Review
The Indian market started the week on a negative note, tracking news from the Korean peninsula. The benchmark indices witnessed selling pressure after the North Korean military conducted fresh nuclear test over the weekend. A similar state was observed in other major markets across the globe. Earlier today, South Korea reported that North Korea may be preparing for another missile launch following its hydrogen bomb test on Sunday.
Today, the Nifty opened lower at 9,966.60 and lost momentum as the day progressed to hit an intraday low of 9,861.55. In the second half, the index pared losses, to reclaim the 9,900 mark, before finally settling at 9,912.85, down 0.62% from Friday’s close. The BSE Sensex opened at 31,932.20, which was also the day’s high. Later in the session, the index fell to a low of 31,565.40. However, in the second half, the index grew higher from its lows and ended the day at 31,702.25, down 0.60% from the previous close.
The market breadth, indicating the overall health of the market, was tilted towards the losers in today’s session. On the NSE, 465 stocks advanced, compared with 955 stocks declining, and 45 stocks remaining unchanged.
Broader markets put up a similar performance as the frontline composites. The Nifty Midcap and Smallcap indices dropped 0.74%and 0.57%, respectively.
Today, the MarketSmith India IND 47 Index, which lists the top 47 stocks in chart on fundamental characteristics, declined by 0.60%.
Most of the sectoral indices ended the day in the red. The Nifty Realty, Pvt Banks, and Bank indices were the top three losers, declining 1.65%, 0.87%, and 0.81%, respectively. The Nifty Media (+0.60%) and Metal (+0.14%) were the only indices that managed to end the day with gains.
Yesterday’s Cabinet reshuffle impacted investors to an extent in today’s trading. Stocks related to railways gained momentum after Piyush Goyal was handed the role of the Railway Minister. Other key departments of Defence, Petroleum, and Minority Affairs were handed to Nirmala Sitharaman, Dharmendra Pradhan, and Mukhtar Abbas Naqvi, respectively.
Today, the Sensex added a new distribution day, while lower trading volume on the Nifty helped it in avoiding the same. The distribution day count for the Sensex and the Nifty now stands at 8.0 and 6.0, respectively. The Indian market status remains in Uptrend Under Pressure.
Current Outlook:
– Be cautious with any new purchases.
– Make a defensive game plan for your portfolio.
– Stay disciplined and exercise sound sell rules.
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