As Speciality Chemical Stocks surge, find out the top stocks with CANSLIM

Daily Market Review

Nifty opened with a gap down of about 50 points as the spread of coronavirus outside China fuelled concerns of a global pandemic. The index traded in a narrow range and remained under selling pressure. It closed below 11,800, holding moderate losses. Currently, Nifty is trading 2.7% and 1.2% below its 50- DMA and 100-DMA, respectively. It is crucial for Nifty to not breach its 200-DMA (11,684).

On the sectoral front, results were mixed. Nifty Realty (+1.0%) and Nifty IT (+0.8%) were the top gainers, while Nifty Pharma (-2.2%) and Nifty Auto (-0.7%) declined the most. Of 2,131 stocks traded, 714 advanced, 1,056 declined, and the remaining traded flat.

Specialty chemical stocks such as Navin Fluorine Intl. (+20%), Deepak Nitrite (+8.3%), and Sudarshan Chemicals (+4.3%) traded higher today.

Here is our take on the Indian Specialty chemical industry, which is expected to grow manifolds over the next few years, both globally and domestically.

Looking forward, we would downgrade the market status to a Correction if it breaches its correction low of 11,614. On the positive side, we would like the index to reclaim its key moving averages and would prefer to see a follow-through day before shifting the market back to a Confirmed Uptrend.

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