Today’s Action
Nifty, -1.2%; Sensex, -1.0%; Model Portfolio, -3.3%; Nifty Midcap, -2.2%; Smallcap, -2.7%; MSI IND47, -1.2%.
Daily Market Review
Market Status: Uptrend Under Pressure
Nifty slipped below 11,200 level and ended lower for the ninth consecutive trading session. Today’s session was marred by a huge selling seen across the sectors, barring IT which closed marginally higher. The volume was marginally lower than the last session, hence, doesn’t qualify as a distribution day.
Nifty Pharma (-4.4%), Media (-3.8%), and Auto (-1.9%) were the top losers whereas Nifty IT (+0.04%) escaped the brunt of selling and closed positive.
Considering the Nifty breaching its 50-DMA and increasing distribution, we had downgraded the market to an Uptrend Under Pressure last Wednesday. We’ll further downgrade the market if the distribution day count increases to more than 5-6.
The advance-decline ratio was in favor of decliners. Of the 2,118 stocks traded on the NSE, 352 advanced, 1,429 declined, and 337 remained unchanged.
Key News
Itc reported its Q4 results today. While revenue and net profit beat estimates, the margin was a miss. EBITDA grew 10.3% y/y to Rs 4,752 crore while the EBITDA margin stood at 38.1% compared with 39.1% in the year-ago period. The Company appointed Sanjiv Puri as the new chairman of the Company effective today. The stock ended 2.8% lower today.
Eicher Motors reported its Q4 results last Friday, which was hit by weak volume growth. Royal Enfield registered a significant volume decline of 14% during the quarter due to overall weakness and subdued customer sentiment in the Auto sector. The stock was down 7.9% today.
Leaders Up on Volume: Titan Company (+1.1%), Tech Mahindra (+1.1%), and Inox Leisure (+0.8%).
Leaders Down on Volume: Karnataka Bank (-3.9%), Vinati Organics (-2.3%), and Torrent Pharmaceuticals (-2.0%).
What do you think? Please email us any questions or comments.
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