Daily Big Picture : Nifty Closes Marginally Lower; Coal India’s November Production Declines 3.9%

Today’s Action

Nifty, -0.07%; Sensex, +0.02%; Nifty Midcap, -0.7%; Nifty Smallcap, -0.9%; Model Portfolio, -0.2%.

Daily Market Review

Market Status: Confirmed Uptrend

Nifty traded in a narrow range and closed the session marginally lower as market participants remained on the sidelines in the face of lower GDP growth and disappointing auto sales numbers. However, it sustained the 12,000 level. The gains in Bharti Airtel (+3.7%), Jsw Steel (+2.6%), and Reliance Industries (+2.3%) offset the losses in Yes Bank (-6.2%), Eicher Motors (-5.1%), and Bajaj Finance (-3.0%).

The weak auto sales numbers dragged Nifty Auto (-0.9%), which was among the top decliners for the day followed by Nifty IT (-0.9%), Pharma (-0.7%), and Realty (-0.4%). On the flipside, Nifty Metal (+0.3%) was the only gainer. The advance-decline ratio leaned toward losers. Of the 2,160 stocks traded on the NSE, 718 advanced, 1,095 declined, and the rest remained unchanged.

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.

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