Positive European Cues Propel Key Composites

Today’s action:

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

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 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.

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