Category: Daily Market Commentary

Today’s Action

Nifty, -0.1%; Sensex, +0.2%; Nifty Midcap, +0.5%; Nifty Smallcap, +0.4%; Model Portfolio, -1.4%

Market Pulse Confirmed Uptrend

After opening more than 100 points higher, Nifty succumbed to profit booking and ended flat. It was a highly volatile trading session. Only 28% of Nifty50 stocks advanced today, led by Tata Motors (+4.7%) and Sun Pharm.Industries (+3.6%). On the flip side, Hindalco Industries (-6.2%) and Jsw Steel (-5.5%) were the major decliners.

On the sectoral front, it was a mixed reaction. Nifty PSU Bank (+4.2%) and IT (+1.6%) were the major advancers. On the other side, Nifty Metal (-3.3%) and FMCG (-2.1%) were the major decliners. Of 2,125 stocks traded, 1,150 advanced, 683 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

DGCA has ordered airlines not to take bookings from May 4 as the final decision is awaited. Shares of Interglobe Aviation (-6%) and Spicejet (-1.7%) have declined sharply.

Fitch has downgraded India’s economic growth forecast for FY21 to 1.8% from 4.6% previously.

Wockhardt received the Qualified Infectious Disease Product (QIDP) designation for its novel antibiotic WCK 6777 from the USFDA.

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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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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.

Today’s Action

Nifty, -0.8%; Sensex, -1%; Nifty Midcap, +1.3%; Nifty Smallcap, +1.3%; Model Portfolio, -0.2%

Market Pulse Confirmed Uptrend

Nifty, after a gap up opening, traded in a narrow range in the first half of the trading session. However, the index shed all its gains in the last hour of the day and closed in negative territory. Further, Nifty added a distribution day as today’s volume was higher than the previous session.

On the sectoral front, results were mixed. Nifty Financial Service and Nifty Bank were the major decliners, which lost more than 2% each. On the flip side, Nifty FMCG (+4.1%) gained the most followed by Nifty Realty (+1.8%). The advance-decline ratio was in favor of advancers. Of 2,111 stocks traded, 1,208 advanced, 588 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

Lupin (Nse)(-1.9%) received the Establishment Inspection Report after closure of the U.S. FDA inspection of the company’s Mandideep Unit II facility, classifying the inspection as Voluntary Action Indicated.

Cadila Healthcare(-4.1%) received tentative approval from the U.S. FDA for Macitentan tablets.

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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.