Daily Big Picture : Nifty Closes at Record High; Realty and Financial Stocks Shine

Today’s Action

Nifty, +0.7%; Sensex, +0.6%; Model Portfolio, +2.1%; Nifty Midcap, +1.7%; Smallcap, +1.6%.

Daily Market Review

Market Status: Confirmed Uptrend

Today, Nifty closed at a new all-time high of 11,924.75. Market participants are welcoming a stable government at the center.

On the sectoral front, it was a mixed reaction. Nifty Realty (+2.2%), Metal (+2.1%), and PSU Bank (+2.1%) advanced the most. Nifty Pharma (-1.0%) and Media (-0.8%) lost the most.

The advance-decline ratio was in favor of advancers. Of the 2,117 stocks traded on the NSE, 1,331 advanced, 470 declined, and 316 remained unchanged.

The Indian market has been moved to a Confirmed Uptrend today as Nifty retook the 11,856 level (its high when it was last in a Confirmed Uptrend).

Accumulation of distribution days instead of continued market strength would signal a weakness in the uptrend. The market status will be changed to an Uptrend Under Pressure if Nifty adds 3-4 distribution days and breaches key support levels. In that case, we would witness failed breakouts in leading stocks. One must not panic and should invest only in fundamentally strong stocks that breakout on above-average volume. In case you go wrong, don’t hesitate to cut your losses at 8%.

Key News

Bharat Heavy Electricals Ltd: The Company reported flat sales for Q4 FY19 at Rs 9,836 crore. PAT grew 49% y/y to Rs 682 crore. The stock ended 5.4% higher today.

Lupin: The Company received two observations for its Goa plant from the U.S. FDA. The regulator also cautioned that the facility may be subject to regulatory action. The stock was down 2.6% today.

Leaders Up on Volume: RBL Bank (+4.6%), Heidelbergcement India (+3.4%), and Acc (+3.2%).

Leaders Down on Volume: Info Edge (India) (-1.9%), Tech Mahindra (-1.3%), and Fine Organic Inds (-0.1%).

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

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