Daily Big Picture:Market Prediction Today as Nifty Stages a Downside Reversal

Today’s Action

Nifty, -4%; Sensex, -4.1%; Nifty Midcap, -2%; Nifty Smallcap, -1.5%; Model Portfolio, 0%

Daily Market Review

Market Pulse: Confirmed Uptrend

Nifty staged a downside reversal closing near the lows but on a lower volume. Nifty Bank and IT saw high selling pressure. Yesterday, volume and percentage gains met our threshold. Hence, we considered it as a follow-through day and upgraded the market to a Confirmed Uptrend. However, we didn’t add any stocks to our portfolio and asked investors to be careful if they take any fresh position as follow-through days after such sharp and dramatic correction can fail and more time should be given to the market to prove its strength.

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Daily Big Picture: FMCG, Pharma ,Metal Stocks Gained up 4-5%

Today’s Action

Nifty, +3.8%; Sensex, +3.6%; Nifty Midcap, +2.3%; Nifty Smallcap, +3.1%; Model Portfolio, 0%

Daily Market Review

Market Pulse: Confirmed Uptrend

Nifty ended the day with strong gains, up about 3.5%, on higher volume than yesterday’s session. As the volume was higher and percentage gains met our threshold, today’s action was considered as a follow-through day.Hence, we upgraded the market to a Confirmed Uptrend. We did see some decent percentage gains by many leaders, but most of them are still below their key moving averages.

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Daily Big Picture: Nifty at an intraday high of 8,576; as Lupin receives a nod from USFDA

Today’s Action

Nifty, -4.4%; Sensex, -4.6%; Nifty Midcap, -2.8%; Nifty Smallcap, -2.3%; Model Portfolio, 0%

Daily Market Review

Market Pulse: Rally Attempt

Nifty, after opening around 300 points lower, surged higher to make an intraday high of 8,576. However, as the day progressed, it continued to decline to end below 8,300. Today’s action has put an end to the last four session’s rally. 76% of Nifty 50 stocks have declined, with Bajaj Finance (-11.8%) and Housing Development Fin. (-11.1%) being the major decliners.

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Daily Big Picture: A Silver Lining is seen as Government Announces 1.7 Lakh Crore Relief Funds

Today’s Action

Nifty, +3.9%; Sensex, +4.9%; Nifty Midcap, +3.4%; Nifty Smallcap, +3.2%; Model Portfolio, 0%

Daily Market Review

Market Pulse:Rally Attempt

Nifty extended its gains for the third consecutive trading session and advanced more than 13% after suffering its worst single day fall on Monday. Volume was on the higher side as against yesterday’s session. Breadth has improved slightly, with 39 of the 50 Nifty stocks closing in the green. Further, today’s action qualified as day three of an attempted rally. So, we are changing the market status to a Rally Attempt from a Downtrend. Tomorrow opens the window for a follow-through day on Nifty. If we advance 1.5% or more on volume that is higher than today, we will change the status to a Confirmed Uptrend. Ideally the follow-through day should occur between the fourth and the seventh day. The follow through days that occur after the 10th day are more likely to fail.

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Daily Big Picture: Financial Stocks Shine as Nifty improves

Today’s Action

Nifty, +6.6%; Sensex, +7%; Nifty Midcap, +3.3%; Nifty Smallcap, +3.3%; Model Portfolio, 0%

Daily Market Review

Market Pulse :“Downtrend”

Nifty traded constructively after a negative opening forming higher highs on the hourly chart and closed the day near 8,300, posting significant gains. Volume was like yesterday’s session. Breadth has improved slightly, with 38 of the 50 Nifty stocks closing in the green. Reliance Industries (+14.7%), Hdfc Bank (+11.6%), and Kotak Mahindra Bank(Nse) (+11.9%) were the top gainers on Nifty. Further, today’s action qualified as day two of an attempted rally.

On the sectoral front, all the sectoral indices closed in the green. Nifty FinService (+9.7%) gained the most followed by Nifty PVT Bank and Nifty Bank, which gained 8.5% and 8.4%, respectively. The advance-decline ratio was in favor of advancers. Of 2,115 stocks traded, 1063 advanced, 703 declined, and the remaining traded flat.

We continue to suggest a cautious approach until the general market conditions improve. Most of the stocks continue to incur technical damage, with many moving deeper into their respective bases and breaking below logical levels of support. Without trying to predict and decode stories, we will take what the market gives us and continue to monitor unfolding conditions. We will continue to monitor quality ideas with rising relative strength lines and superior fundamentals that could be set up to buy when and if the market begins to stabilize.

Key News

Indian crude oil production declined 6.4% to 2.39M tonnes in February versus 2.56M tonnes in the year-ago period.

U.S. lawmakers and Trump administration officials have agreed on an agreement on an estimated $2T economic stimulus bill, aiming at shielding the U.S. economy from the repercussions of the coronavirus pandemic.

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Disclaimer: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.