Today’s Action:
Key indices snapped six-day losing streak; Broader indices follow the suit.
Daily Market Review:
The benchmark indices recovered on Thursday, snapping six-day losing streak as both the Sensex and the Nifty were gaining less than a percent.
The stock indices started on a positive note amid strong Asian cues as worries surrounding trade war eased out. Reports suggest that Donald Trump’s import tariff plan may spare selected countries from much of the impact.
Today’s chart is no less than a roller coaster ride, as the stock indices oscillated in and out of negative territory. The key indices trimmed their morning gains and slipped in the red but managed to come off from the day’s low to post a modest gain.
Broader indices depicted the same trend, as the Nifty Midcap and Smallcap added 0.49% and 0.39%, respectively.
Barring few, all the sector indices closed in the green on NSE, with Nifty PSU Bank gaining 2.80% followed by Financial Services (+1.54%) and Realty (+1.43%).
Leading stocks had a decent day, as MarketSmith India IND 47, our proprietary list of top 47 stocks with strong technical and fundamental characteristics, advanced 0.25%.
On the contrary, the advance-decline ratio favored losers once again. Of the 1,614 stocks that traded today, 741 gained, 804 declined, while 69 names remained unchanged.
As both the key indices offered some respite, a day’s gain is not sufficient to change the market direction. Our market outlook remains unchanged at Downtrend, as we need the index to close higher for next two days off the previous low.
Current Outlook:
– Avoid fresh buys, do not average down
– Protect profits and cut losses
– Build a watch list
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