Today’s Action:
Major indices record decent gains; Broader markets buck the trend.
Daily Market Review:
For the sixth consecutive day, the Indian market ended with decent gains. The frontline indices started on a flat note but got stronger as the session progressed. In the end, the Nifty and the Sensex increased 0.4% and 0.5%, respectively.
IT companies had a robust day, as most of the technology stocks surged around 4%, on the back of falling rupee and ahead of Infosys Q4 FY 2018 earnings which are due tomorrow.
From the broader market, the Nifty Midcap and Small cap underperformed the benchmark indices as they posted a loss of 0.3% and 0.5%, respectively.
Sectoral chart gave a mixed view today. The top-performing sectors were Nifty IT (+3.2%), Private Bank (+0.6%), and Financial Services (+0.5%). On the downside, sectors having an off-day were Nifty Realty (-1.9%), Metal (-1.4%) and PSU Bank (-1.3%).
Market breadth favored losers once again. Of the 2,048 stocks traded on the NSE, 1016 declined, 715 advanced, and 317 remained unchanged.
Our proprietary list of leading stocks, the MarketSmith India {IND 47 index} declined 0.1% in today’s session.
Today’s gain helped the key indices to reclaim the 50-DMA. As both the indices are trading above their key support levels of 50 and 200-DMA with market status in a Confirmed Uptrend, the green light is on for investors to look out for growth stocks that are breaking out of sound chart patterns. We continue to see stocks breaking out of valid base patterns along with some of them making new highs.
On the macro front, the government is expected to announce its February industrial production as well as March CPI inflation data after market hours today. For the month of January, India’s industrial production grew at 7.5% y/y whereas CPI inflation for the month of February dipped to a four-month low of 4.44%.
Current Outlook:
– Market environment conducive for purchases, but remain selective.
– Focus on fundamentally strong stocks breaking out of strong technical patterns.
– Stay disciplined and exercise sound buy and sell rules.
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