Daily Big Picture – Bears Take Control Over D-Street ; Nifty Below 9,750


Today’s Action:

Market displays bearish signal as the key indices continue to post stiff losses triggered by weak domestic and global cues.

Daily Market Review:

The benchmark indices continue its losing streak as the Sensex cracks over 400 points, while the Nifty fell over 130 points in today’s trading session. Broader and sectoral indices also posted a hefty loss.

After opening higher at 9,920.60 the Nifty lost 1.38% during the day to close at 9,735.75. It traded in the wide range of 9,714.40-9,921.05. The BSE Sensex started the day at 31,785.24 and declined by 1.39% today. After trading in the range of 31,100.80-31,797.46 it finally settled at 31,159.81.

The market breadth, indicating the overall health of the market was in favour of the nonperformers today. On the NSE, 187 stocks advanced, compared with 1257 stocks declining, and 30 stocks remaining unchanged.

The broader markets followed today’s market trend as the Nifty MidCap and SmallCap both declined 2.30% and 2.33%, respectively.

The MarketSmith India IND 47 Index, which lists the top 47 stocks in chart on fundamental characteristics, lost -2.50% today.

The sectoral chart also displayed a gloomy picture today, as all the sectors ended in the red. The top three nonperformers were Nifty PSU Bank, Realty, and Pharma with decrements of 3.06%, 2.93%, and 2.81%, respectively.

Due to higher volume, the Nifty attracted a distribution day today, thus taking the distribution day count to 4, while the lower trading volume on BSE Sensex helped it to escape a distribution day today, thereby, keeping the distribution day count to 3 on the Sensex. The market status remains in “Uptrend Under Pressure”.

Indian army conducted another surgical strike alongside the Indo-Myanmar border, hitting Nationalist Socialist Council of Nagaland-Khaplang (NSCN-K). This news took a heavy toll on the market as it further dragged down the key indices.

In stock news, Kec international has bagged an international order worth INR 610 crore for the transmission and distribution business. It has also received various other orders from railways, civil and solar business, amounting to INR 245 crore.

Larsen & Toubro construction has won an order worth INR 1,547 crore, while its power transmission and distribution business has bagged orders worth INR 623 crore in the global market.

Divis lab fell 7% intraday today after recent news stated that it received six observations from the USFDA for its Vizag unit.

Current Outlook:

– Market environment conducive for new purchases, but remain selective.

– Focus on fundamentally strong stocks breaking out of strong technical patterns.

– Stay disciplined and exercise sound buy and sell rules.

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