Daily Big Picture : Nifty Breaches 21-DMA; Auto, Banks, and Realty Stocks Lose the Most

Today’s Action

Nifty, -1.7%; Sensex, -1.7%; Nifty Midcap, -2.0%; Nifty Smallcap, -2.2%; and Model Portfolio, -0.5%.

Daily Market Review

Market Status: Rally Attempt

It was a downward trending day as benchmark indices continue to fall through the session. Nifty decisively breached its 21-DMA today. The death cross which took place earlier, the gap between 50- and 200-DMA has widened. Nifty turned negative for the year.

All the eleven sectoral indices ended in the red. Nifty Auto (-3.8%), PSU Bank (-3.7%) and Realty (-3.7%) were the top decliners. Except Nifty IT, all other indices are trading below their 50-DMA, which indicate weakness.

The advance-decline ratio was leaned toward decliners. Of the 2,122 stocks traded on the NSE, 517 advanced, 1,264 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.

Key News

Key stocks such as Housing Development Fin. and Hdfc Bank breached their key level of 200-DMA today.

Tata Communications: The company to transfer over 773 acres of surplus land to Hemisphere Properties India as part of demerger plan. The stock was down 35% today.

Cg Power And Industrial Solutions: Shares hit upper circuit 5% as PE firm KKR acquired a 10% stake in the company by invoking pledged shares. The stock has lost about two-thirds of its value in 2019.

What do you think? Please email us any questions or comments.

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