Daily Big Picture – Nifty Ends Flat After a Range-Bound Session; Midcap and Smallcap Stocks Outperform

Today’s Action

Nifty, 0.00%, Sensex, 0.00%, Model Portfolio, +0.75%; MSI Ind 47, +0.4%, Nifty Midcap, +0.5%, Smallcap +0.6%.

Daily Market Review

Market Status: Downtrend.

We changed the market status to a Downtrend on January 28 after the Nifty breached its key moving averages at a time when the distribution day count was 5.

The Nifty opened positive and traded in a range-bound manner amid the volatility induced by earnings release. Today marked the Day 2 of an attempted rally. If the Nifty does not breach 10,584 level (low of Jan 28) for one more session, we will look for a follow-through day in subsequent sessions after which we will move the market status to a Confirmed Uptrend.

The advance-decline ratio was in favor of advancers. Of the 2,062 stocks traded on the NSE, 961 advanced, 770 declined, and 331 remained unchanged.

On the sectoral front, Nifty Private Bank (+1.3%), Nifty PSU Bank (+1.9%), Nifty Metal (+1.9), and Nifty Media (+1.7%) extended strong gains. Nifty FMCG (-1%) and Nifty Realty (-0.7%) were the top losers. According to O’Neil Methodology, Nifty Metal and Auto are in a Downtrend. Nifty FMCG, Banks, Financial Services, IT and Energy are in a Confirmed Uptrend.

Stocks in News

Bajaj Auto: The Company announced its Q3 FY 2019 results during market hours. Operating revenue and EBITDA missed consensus estimates. The stock reacted negatively and ended 2.7% lower.

Dewan Housing Finance: Today, the Company clarified on allegations made by Cobrapost and denied that the companies in which DHFL made investments were shell companies. DHFL informed that it is looking to sell some of its non-core assets to generate liquidity in coming few months. The stock was down 4.9%.

Leaders Up on Volume: Bajaj Finance (+3.2%) and Radico Khaitan (+2.6%)

Leaders Down on Volume: L&T Technology Services (-4.2%), Housing Development Fin. (-1.9%), and Capri Global Capital(-0.2%)

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