Today’s Action

Nifty, +0.8%; Sensex, +0.7%; Nifty Midcap, +1.8%; Nifty Smallcap, +2.8%; Model Portfolio, +2.0%

Market Pulse Confirmed Uptrend

Nifty, after a negative opening, closed the day around 70 points higher. It made an intraday high of 9,053 and closed below 9,000. Today, 70% of Nifty50 stocks advanced, led by Ntpc (+5.8%) and Vedanta (+5.2%). On the flip side, Hcl Technologies (Nse) (-3.9%) and Tech Mahindra (-3.9%) were the major decliners.

Barring Nifty IT (-1.9%) and FMCG (-0.6%), all the sectoral indices closed higher. Nifty Media (+2.6%) and Nifty Bank (+1.8%) were the major advancers. Of 2,116 stocks traded, 1,331 advanced, 462 declined, and the remaining traded flat.

We continue to be very selective about taking any fresh positions. It is important that investors don’t play all their cards at once. We would suggest adopting an investment approach where you begin with a small allocation and increase it as and when the market advances further.

Without trying to predict and decode stories, we will take what the market gives us and continue to monitor unfolding conditions. Stocks with higher relative strength and superior fundamentals can do well. Some leading stocks have sharply corrected. Wait for them to put in at least a short period of consolidation and show a constructive breakout from that range. Buying without this period of constructive behavior into a straight upmove off the bottom, puts you at a risk of drawdown.

Key News

Larsen & Toubro received ‘significant’ orders during January-March quarter. ‘Significant’ category orders range between Rs 1,000 crore and Rs 2,500 crore.

Vodafone Idea enhanced network capacity in the Delhi-NCR circle by deploying the most efficient 900 MHz spectrum band on 2,300 4G sites to cater to rising demand amid coronavirus lockdown.

IL&FS sold its 100% stake in IL&FS Wind Power Services to ORIX Corporation, Japan for Rs 6.05 crore.

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Author's Bio: 

MarketSmith India - One stop solution for all your Stock Market needs. Get stock market tips and stock predictions all at one place. A proprietary tool by William O'Neil India following CANSLIM method of investing.