Daily Big Picture – Markets Start the Week with Losses; Metal and Realty Stocks Drag Down Market

Today’s Action 

Benchmark indices started the week with losses. Nifty, -0.8%, Sensex, -0.8%, Model Portfolio, -1.1%; MSI Ind 47, -1.0%.

Daily Market Review 

Markets ended in the red for three consecutive days. The Nifty was in positive territory in the later half of today’s session, but succumbed to selling pressure. Indian markets are experiencing selling pressure following a selloff in global markets.

On the sectoral front, barring Nifty PSU Bank (+0.4%) and IT (+0.3%), all the indices ended in the red. Nifty Metal (-2.3%) and Nifty Realty (-2.1%) lost the most. Tata Consultancy Svs. (+1.2%) and Bharti Infratel (+1.0%) were the major gainers whereas Jsw Steel (-5.1%) and Hero Motocorp(-4.7%) were the losers among the Nifty 50 stocks.

The Nifty Midcap and Smallcap were down 0.7% and 1.1%, respectively.

The advance-decline ratio was in favor of decliners. Of the 2,074 stocks traded on the NSE, 532 advanced, 1177 declined, and 365 remained unchanged.

On December 19, we moved the market status to a Confirmed Uptrend as the Nifty reclaimed the 10,942 level (market’s high before it was downgraded to an Uptrend Under Pressure). A follow-through day in the next few sessions will strengthen the current uptrend. We would like to see multiple high-quality stocks breakout from their pivot points and make new highs. For now, we recommend investors to stay selective and buy only high-quality growth ideas that are exhibiting strong relative strength compared with the market.

Though the Nifty has been moved to a Confirmed Uptrend, the Nifty 500 and the Nifty Smallcap are still in a Rally Attempt. It should be noted that the last time we changed the market status to a Confirmed Uptrend, the  Nifty 500 index was in a Rally Attempt then as well. Therefore, we would advise caution until the broader indices move to a Confirmed Uptrend.

Stocks in News

Cadila Healthcare: Zydus Cadila has received a final approval from USFDA for marketing two drugs. One is used for bacterial infections and other is to treat hyperuricemia (constantly high levels of uric acid). The stock was down 0.1% today.

Piramal Enterprises: The Company’s board approved plans to raise Rs 2,500 crore by issuing redeemable Non-Convertible Debentures through private placement. The stock was up 0.3% today.

Leaders Up on Volume:Aditya Fash.& Retail (+0.9%)

Leaders Down on Volume:Icici Lombard General Ins Co (-2.7%) and Vimta Labs (-2.1%).

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