Daily Big Picture : Last Hour Buying Helps Nifty Post Gains; Bajaj Finance Beats Q4 2019 PAT Estimates

Today’s Action

Nifty, +0.9%; Sensex, +0.8%; Model Portfolio, -0.3%; Nifty Midcap, +0.3%; Smallcap, +0.6%; MSI IND47, +0.8%.

Daily Market Review

Market Status: Uptrend Under Pressure

Benchmark indices continued their volatile action today, with Nifty ending 0.9% higher due to strong momentum at the end of today’s trading session. However, smallcap (+0.6%) and midcap (+0.3%) underperformed the Nifty.

On the sectoral front, Nifty IT (+1%) and Banks (+0.8%) ended strong, whereas Pharma (-0.2%) was the top loser.

Despite strong gains, the advance-decline ratio was in favor of losers. Of the 2,096 stocks traded on the NSE, 841 advanced, 898 declined, and 357 remained unchanged.

Considering the Nifty breaching its 50-DMA and increasing distribution, we downgraded the market to an Uptrend Under Pressure last Wednesday. Currently, distribution day count of 6 is a point of concern. The 200-DMA should be closely watched as it is an important support level, breaching which will be a sign of weakness. Up days on strong volume and follow-through days will hint toward market strength.

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