Nifty, -0.7%; Sensex, -0.7%; Nifty Midcap, -0.2%; Nifty Smallcap, +0.01%; and Model Portfolio, +0.4%.
Daily Market Review
Market Status: Rally Attempt
Benchmark indices opened lower tracking weak cues from global markets. During the session, Nifty hovered around 11,000 to end slightly above it. In the broader market, Nifty Midcap was down 0.2% and Smallcap ended flat. Currently, Nifty is trading ~2% below its 50- and 200-DMA. From August, 200-DMA is acting as a strong resistance; reclaiming the 200-DMA will be a constructive set up.
The majority of sectors ended in the red. Nifty PSU Bank (-1.3%) and Realty (-1.0%) were the top decliners. On the flipside, Nifty FMCG (+0.6%) and Pharma (+0.5%) were the top gainers. Energy stocks Bharat Petroleum (-7.3%), Hindustan Petroleum (-5.8%), and Indian Oil (-1.4%) were down following a drone attack on Saudi’s Aramco plant.
The advance-decline ratio was leaned towards advancers. Of the 2,141 stocks traded on the NSE, 965 advanced, 813 declined, and the rest remained unchanged.
Looking forward, we would like to see an improvement in market breadth and Nifty trading above its 21-DMA. If a follow-through day occurs, we will shift the market to a Confirmed Uptrend. On the flip side, if Nifty breaches its correction low of 10,637, we will change the market status to a Downtrend.
WPI inflation remained unchanged at 1.08% in August, the same as that of July.
Dr Reddys Laboratories: – The company launched Lansoprazole Delayed-Release Capsules USP, 15 mg, an over-the-counter store-brand equivalent of Prevacid 24HR Capsules, in the U.S. market. The stock was down 0.2% today.
Larsen & Toubro: – The company bagged orders worth Rs 1,000 – 2,500 crore from various clients spread across India. The stock was down 1.5% today.