Nifty, +0.1%; Sensex, +0.1%; Nifty Midcap, -0.1%; Nifty Smallcap, -0.8%; Model Portfolio, +0.4%.
Daily Market Review
Market Pulse Uptrend Under Pressure
Nifty closed the volatile session with a marginal gain amid strong accumulation in stocks such as Housing Development Fin. (+2.1%), Reliance Industries (+1.1%), and Maruti Suzuki India (+1.6%). Maruti raised its output after nine months of production cuts. However, the broader market saw a negative reaction as Nifty Midcap and Smallcap fell 0.1% and 0.8%, respectively. Going forward, market participants would keep a close watch on CPI, IIP, and WPI numbers scheduled to release this week.
On the sectoral front, Nifty Auto (+0.8%) was the top gainer led by Maruti Suzuki India followed by Nifty Metal (+0.6%) and Financial Services (+0.4%). Among others, Nifty Pharma (+0.03%) closed with a minor gain. On the flipside, Nifty Realty (-1.6%) was the top decliner followed by Nifty IT (-0.9%), Media (-0.8%), and FMCG (-0.6%).
Last Friday, we moved the market to an Uptrend Under Pressure. From here, we will change the status to a Downtrend, if 2–3 more distribution days are added or Nifty breaches its 50-DMA (11,734). Looking forward, we would like to see an improvement in market breadth and Nifty trading above its 21-DMA.
Maruti Suzuki India: Following a mild recovery in October, the company increased its vehicle production by 4.3% to 141,834 vehicles in November. The production of utility vehicles such as the Vitara Brezza, XL6, and Ertiga increased 18% y/y, while that of compact hatchback cars such as the Wagon R, Celerio, and Baleno increased 18.8% y/y. The company also announced that it will stop producing diesel vehicles from April 1, 2020. The stock closed 1.6% higher.
Goa Carbon: The company’s production grew 33% y/y to 15,413.9 MT in November. The stock closed 2.2% higher.
Tata Motors: The company’s JLR unit reported a consistent show in China (+29% y/y) sales for the fifth consecutive month in November. In addition, North America (+4.9% y/y) also witnessed best-ever November sales. The stock closed 0.6% lower.
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