Positive European Cues Propel Key Composites

Major indices had a good day with significant gains. Broader indices continue their rally.

The benchmark indices bounced back strongly to notch gains of about 1%, in today’s session. News of the French Presidential election and good Q4 FY 2017 updates lifted investor spirits. The positive market environment was evident in other Asian markets as well.

The Nifty closed the day in green with a gain of 1.08%, (+98.55 points) and closed at 9,217.95. The index traded in the range of 9,130.55 – 9,225.40.

Similarly, the Sensex pocketed gains of 0.99% (+290.54 points) and closed at 29,655.84. The day’s range was observed at 29,392.99 – 29,681.33.

Trading volume on the Nifty was higher compared to the previous trading session. The Sensex recorded low volume.

The broader indices continued their winning streak with the Nifty Midcap and Smallcap indices gaining 0.62% and 1.19%, respectively, in today’s trading session.

The William O’Neil IND 47 Index, which lists the top 47 stocks in chart and fundamentals, continues its positive run with solid gains of 1.2%, in today’s session.

The sectoral indices also performed in line with the broader indices after all the sectors closing in green apart from Nifty Media and Pharma. Nifty Realty, Financial, and PSU Banks were the largest winners gaining 2.40%, 1.55%, and, 1.44%, respectively, while Nifty Media and Pharma lost -0.58% and -0.30%, respectively.

In news from the European Continent, the French presidential election round one took place on Sunday with Emmanuel Macron and Marine Le Pen advancing to the second and final round of the polls. This historic vote saw a triumph for the newcomer, Macron, on one hand and the oust of two major parties, the Socialists and centre-right Les Republicans, on the other hand. The final showdown slated for March 7, 2017, may witness a close neck to neck competition between Le Pen and Macron. The European markets started on a strong note as a result of Macron’s first round win.

In the stock talk, HCL Technologies announced its acquisition plan of Urban Fulfillment Services, a U.S. based firm. Urban Fulfillment Services is a mortgage business process and fulfilment services firm, with three centres in the country. The cash consideration for the deal is reported at $30 million.

The heavyweights in the benchmark indices lifted the composites based on their optimistic results update. HDFC Bank witnessed accumulation after reporting stable Q4 results in the last week. Investors remained bullish on Reliance Industries ahead of their earnings update later in the day.

Today the key indices recorded a strong up day, erasing last week’s losses. As the earnings season picks up pace, positive results will boost market momentum. The current distribution day count for the Sensex and the Nifty stands at 5.0 and 4.0, respectively. The Indian market status remains in a Confirmed Uptrend.

For more updates, 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.