Daily Big Picture: Financial Stocks Shine as Nifty improves

Today’s Action

Nifty, +6.6%; Sensex, +7%; Nifty Midcap, +3.3%; Nifty Smallcap, +3.3%; Model Portfolio, 0%

Daily Market Review

Market Pulse :“Downtrend”

Nifty traded constructively after a negative opening forming higher highs on the hourly chart and closed the day near 8,300, posting significant gains. Volume was like yesterday’s session. Breadth has improved slightly, with 38 of the 50 Nifty stocks closing in the green. Reliance Industries (+14.7%), Hdfc Bank (+11.6%), and Kotak Mahindra Bank(Nse) (+11.9%) were the top gainers on Nifty. Further, today’s action qualified as day two of an attempted rally.

On the sectoral front, all the sectoral indices closed in the green. Nifty FinService (+9.7%) gained the most followed by Nifty PVT Bank and Nifty Bank, which gained 8.5% and 8.4%, respectively. The advance-decline ratio was in favor of advancers. Of 2,115 stocks traded, 1063 advanced, 703 declined, and the remaining traded flat.

We continue to suggest a cautious approach until the general market conditions improve. Most of the stocks continue to incur technical damage, with many moving deeper into their respective bases and breaking below logical levels of support. Without trying to predict and decode stories, we will take what the market gives us and continue to monitor unfolding conditions. We will continue to monitor quality ideas with rising relative strength lines and superior fundamentals that could be set up to buy when and if the market begins to stabilize.

Key News

Indian crude oil production declined 6.4% to 2.39M tonnes in February versus 2.56M tonnes in the year-ago period.

U.S. lawmakers and Trump administration officials have agreed on an agreement on an estimated $2T economic stimulus bill, aiming at shielding the U.S. economy from the repercussions of the coronavirus pandemic.

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Disclaimer: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.

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