Daily Market Review
Market Pulse :Rally Attempt
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.
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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