Daily Big Picture : Nifty Closes Below 12,000; ICICI Bank Cuts its MCLR by 10bps

Today’s Action

Nifty, -0.5%; Sensex, -0.3%; Nifty Midcap, -1.1%; Nifty Smallcap, -0.7%; Model Portfolio, -0.1%.

Daily Market Review

Market Status: Confirmed Uptrend

Indian market saw a freefall following its Asian peers as global trade tensions surfaced after the U.S. decided to impose tariffs on steel and aluminum imports from Brazil and Argentina to counteract against the devaluation of their currencies. Nifty breached it 12,000 level aided by a sharp correction in metal and PSU bank stocks. The broader market is no exception as Nifty Midcap and Smallcap declined 1.1% and 0.7%, respectively.

On sectoral perspective, Nifty Metal (-2.6%) was the major decliner led by Jindal Steel & Power (-6.1%), Tata Steel (-5.0%), Jsw Steel (-4.1%), and Steel Authority Of India (-3.7%). Among others, Nifty Media (-2.4%), Pharma (-1.0%), and Bank (-0.8%) followed the suit. On the flipside, Nifty Realty (+1.3%) and IT (+0.5%) gained the most.

Though maintaining a positive view on the general market, we are taking a note of higher number of distribution days. Nifty is less than a percent above its 21-DMA. If the 21-DMA is breached and the distribution day count remains elevated, we may downgrade the market to an Uptrend Under Pressure. If the rally sustains, look for stocks that had pulled back in price on low volume. If those stocks rebound from their moving averages when the market starts making higher highs, then they can do well.

Key News

Max India gained 2.6% after IRDA approved the divestment of the entire shareholding of the company held in its material subsidiary.

Biocon launched Ogivri, a biosimilar to Herceptin, in the U.S. market. The stock rose 4.5% intraday before ending the day on a flat note.

Icici Bank lowered its one-year MCLR by 10bps to 8.25%, effective December 1. This is the fourth consecutive cut since August. The stock was down 0.3%.

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

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