Daily Big Picture : Banking Stocks Drag Benchmark Indices; Nifty Adds Distribution Day

Today’s Action

Nifty, -0.7%; Sensex, -0.8%; Model Portfolio, -0.7%; Nifty Midcap, -0.6%; Smallcap, -1.6%

Daily Market Review

Market Status: Uptrend Under Pressure 

Nifty registered another day of sell-off, losing ~3% in the last three trading sessions. Nifty (-0.7%) added another distribution day, taking the cumulative count to five. After hovering around its 100-DMA for 7–8 trading sessions, it decidedly breached the support and the simultaneous increase in distribution day count confirms technical weakness.

Nifty Financial Services (-2.6%) and Banks (-1.7%) underperformed by a significant margin, followed by Nifty FMCG (-1.1%). Nifty Metals (+1.8%) and Pharma (+1%) managed to close positive.

Looking forward, we would closely watch the distribution day count. Weaker breadth and breakdown of some leading stocks after results raise concerns. We may change the market status to a Downtrend if the Nifty breaches key support and adds two-three distribution days.

Key News

Dabur India: The Company reported Q1 FY20 results on Friday after market hours. Revenue and net profit were up 9.3% and 10.3%, y/y, respectively, beating market estimates. The stock ended 0.3% higher today.

Hdfc Bank: The bank reduced its fixed deposit rates for select maturities of one year and lower. It also reduced its one year fixed deposit rate by 20bps. The stock ended 3.3% lower after the announcement of quarterly results during the weekend.

What do you think? Please email us any questions or comments.

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