Today’s Action:
Benchmark Indices observed a volatile trading session today, further extending their losses. The Nifty escaped a distribution day, while the Sensex picked up another distribution day today.
Daily Market Review
The benchmark indices started on a positive note today, however, it could not sustain its momentum. The Nifty broke its 50-DMA level of 9,790 today and the Sensex also displayed a dismayed performance.
The Nifty started the day at 9,864.25 and traded in the range of 9,740.10-9,884.35. The index finally closed at 9,754.35, down 0.84% from last Friday’s close.
After opening at 31,609.93 points, the Sensex also lost 0.84% today to close at 31,258.85. During the day, the Sensex traded in a range of 32,194.58-32,502.55.
The Nifty escaped a distribution day today, due to lower volume compared to the previous trading session, however, the Sensex picked up another distribution day today. The distribution day count for the Nifty and the Sensex currently stand at 6.0 and 8.0, respectively. The market status is currently “Uptrend Under Pressure”.
The broader markets followed the frontline indices, the Nifty Midcap and Smallcap both posted a loss of 1.46% and 1.47%, respectively.
The MarketSmith IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics, declined 0.50% in today’s trading session.
On the sectoral front, all the indices ended in the red today. Nifty PSU Bank, Pharma, and Metal were the biggest losers today with decrements of 1.82%, 1.73%, and 1.39%, respectively.
After Vishal Sikka resigned as the CEO of Infosys Ltd, the company on Saturday announced its buyback plan of 11.3 crore shares amounting to worth INR 13,000 crore. The stock was trading at a loss of 4.89% intraday.
The Department of Industrial Policy and Promotion (DIPP) proposed credit guarantee fund for startups is likely to get cabinet approval by September. The fund with an initial corpus of INR 2,000 crore, will be used to facilitate collateral- free loans of INR 5 crore.
Indigo today clarified through a tweet that the misleading information about the alleged spurt in cancellations is a rumour that has been passed on by one of its competitors.
The Indian Meteorological Department (IMD) in its weekly press release stated that almost three fourth of the country has received deficit rainfall in the first half of the monsoon, however, they are optimistic for the second half of the rainy season.
Current Outlook:
– Be cautious with any new purchases.
– Form a defensive game plan for your portfolio.
– Stay disciplined and exercise sound sell rules.
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