Daily Big Picture : FMCG and IT Stocks Drag Nifty; Titan Fell 12% on Subdued Q1 Update

Today’s Action

Nifty, -0.02%; Sensex, +0.03%; Model Portfolio, -0.04%; Nifty Midcap, +0.4%; Smallcap, +0.4%

Daily Market Review

Market Status: Uptrend Under Pressure 

Nifty closed negative for the third consecutive session amid a volatile trading session. Nifty, after hitting day’s low in the morning session, bounced back strongly in the afternoon session driven by Bajaj Finance (+5.6%), Sun Pharm.Industries (+5.3%), Indian Oil (+5.1%), and Bajaj Finserv (+3.5%).  In the broader market, Nifty Midcap and Smallcap closed 0.4% higher.

On the sectoral front, Nifty FMCG (-0.9%) declined the most followed by Nifty IT (-0.8%), and Financial Services (-0.2%). On the other side, Nifty Realty (+2.8%), Pharma (+2.7%), and PSU Bank (+1.4%) were the top gainers. The advance-decline ratio leaned toward decliners. Of the total 2,082 stocks traded on the NSE, 860 advanced, 871 declined, and the rest ended flat.

Yesterday, we changed the market status to an Uptrend Under Pressure from a Confirmed Uptrend, driven by factors such as Nifty breaching its 50-DMA, accumulation of distribution days, and stalling days. From here, if 2-3 more distribution days are added, we will change the status to a Downtrend. The status will be back to a Confirmed Uptrend if Nifty retakes 12,104 (high during the recent rally). We would like to see Nifty holding its 100-DMA (11,500 level), which gave good support when market corrected in May. On further downside, Nifty can find support near its 200-DMA, which is ~4% below the current level.

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