Daily Big Picture – Bears Take Control Over Dalal Street; Nifty Breaches The 50-DMA

Today’s Action:

Investors resort to selling off their investment ahead of the Gujarat election results; the indices witnessed heavy drop today specially during the last hours of the trade.

Daily Market Review:

Markets observed a very volatile trading session ahead of the Gujarat election results. Both the Nifty and the Sensex opened marginally lower and went on to gain almost 0.40% in the middle of the day. However, the selling intensified in the last hour of the trade thereby dragging the key indices further away from their all-time highs.

The Nifty started the day at 10,236.60 and traded between 10,169.85- 10,296.55. It ended the day with losses of 0.46% at 10,192.95. The BSE Sensex had a similar story; it started the day flat at 33,229.73 and lost 0.53% today to close at 33,053.04. It traded in the range of 32,988.82-33,404.26.

The broader indices also witnessed some heavy sell off today as the Nifty Midcap and Smallcap indices both lost 0.96% and 1.24%, respectively.

The market breadth, which indicates the overall health of the market, was also in favour of losers today. On the NSE, 476 stocks advanced and 1,069 stocks declined. A total of 45 stocks remain unchanged.

Apart from Media (+0.05%) and Energy (+0.20%) all the sectors ended in red today. The top three losers were Nifty Realty (-2.14%), PSU Bank (-1.83%) and Pharma (-1.28%).

The MarketSmith IND 47 Index, our proprietary lists of the top 47 stocks in technical chart and fundamental chart, lost 0.74% today.

In stock talk, Rico Auto Industries surged more than 3% intraday on signing a joint venture agreement with a Singapore-based company. This venture is for a project that consists of manufacturing autonomous electric vehicles to be run on dedicated tracks.

Today, both the Sensex and the Nifty gained one distribution day due to higher trading volume, compared with yesterday’s trading session. Hence, the distribution day count increases to six on the Nifty and five on the Sensex while the market status remains at an Uptrend Under Pressure.

Current Outlook:

– Be cautious with any new purchases.

– Make a defensive game plan for your portfolio.

– Stay disciplined and exercise sound buy and sell rules.

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