Nifty, -0.6%; Sensex, -0.4%; Nifty Midcap, -0.7%; Nifty Smallcap, -1.2%; Model Portfolio, +0.2%
Daily Market Review
Market Pulse :Downtrend
Nifty opened higher tracking global cues. However, in the second half, Nifty declined around 400 points as two more Coronavirus cases got detected in India. India VIX increased 8% to 25.2. Entertainment stocks Pvr (-9.7%) and Inox Leisure (Nse) (-12.3%) were hit badly as fears of virus increased.
Barring Nifty IT (+1.4%), all the sectors closed in the red. Nifty Media (-4.6%) and PSU Bank (-4.5%) were the top decliners. Of 2,166 stocks traded, 701 advanced, 1,105 declined, and the remaining traded flat.
We have downgraded the market to a Downtrend, implying minimizing exposure toward the market. We recommend that investors trim positions, raising cash if possible, or keep a defensive approach by holding stocks that are resilient in a falling market. Investors should consider booking profits in stocks that have performed well and have advanced 20–25% from their ideal buy points. Further, stocks slipping below their respective 50- and 200-DMA on above average volume should be sold.
Looking forward, we will shift the market to a Rally Attempt if Nifty establishes a bottom and stays above its recent low for three straight sessions. From there, we would prefer to see a follow-through day before shifting the market back to a Confirmed Uptrend. Should this occur, the focus will be on ideas that show the best relative strength with good accumulation. The stocks that recover swiftly tend to lead the next run. Investors should maintain a watch list of attractive growth stocks and wait for the market to show signs of a Rally Attempt.
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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.