Today’s Action
Nifty, -2.4%; Sensex, -2%; Nifty Midcap, -4.3%; Nifty Smallcap, -5.5%; Model Portfolio, 0%
Daily Market Review
Market Pulse: Downtrend
Nifty, after a gap down opening, traded toward the day’s high of 8,575. However, it succumbed to selling pressure in the last hour of trading and erased its gains to close below 8,300. About 80% of Nifty50 stocks closed in the red.
All the sectoral indices closed in the red. Nifty Auto and Nifty Metal declined more than 5%, while Nifty Realty and Nifty Media declined 4–5%. Advance-Decline ratio was highly skewed toward decliners. Of 2,124 stocks traded, 411 advanced, 1,438 declined, and the remaining traded flat.
Today, Nifty breached its yesterday’s low and made a new low of 7,832.5. So, today’s action cannot be qualified as the Day 1 of a rally attempt.
We continue to suggest a cautious approach until the general market conditions improve. Most of the stocks continue to take on 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
Kotak Mahindra Bank(Nse) (+3.3%): Kotak Mahindra Bank and one of its wholly-owned subsidiaries have together sold 20% stake in ECA Trading Services Limited, for a cash consideration of Rs 1.67 crore for Kotak Mahindra Bank and Rs 2.27 crore for Kotak Mahindra Prime.
Spicejet(-9.9%): Today, the company announced a temporary suspension of the majority of its international operations from March 21 till April 30.
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