Today’s Action
Nifty, -0.5%; Sensex, -0.6%; Model Portfolio, -0.4%; Nifty Midcap, -0.1%; Smallcap, -0.5%; MSI IND47, +0.2%.
Daily Market Review
Market Status: Uptrend Under Pressure
Today’s session was volatile as the weekly options contracts of the Nifty and Bank Nifty expired today. The Nifty and the Sensex declined for the seventh consecutive day, second longest losing streak in 2019. Today’s volume was marginally lower than yesterday’s, hence, doesn’t qualify as a distribution day. However, we record today’s action as a weakness.
The reaction was mixed on sectoral front. Nifty Media (+3.6%) and IT (+0.4%) were top gainers and Metal (-1.4%) and Bank (-0.4%) were top losers.
Considering the Nifty breaching its 50-DMA and increasing distribution, we downgraded the market to an Uptrend Under Pressure yesterday. 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.
Key News
Maruti Suzuki India cut its production by 9.6% in April, the third consecutive month of reduced production. The stock ended 0.4% lower today.
Asian Paints reported 11.7% growth in revenue from operations, 1.6% decline in net profits for the March quarter y/y. The stock was down 2.3% today.
Leaders Up on Volume: Granules India (+4.4%), Icici Lombard General Ins Co (+2.9%), and Bajaj Finserv (+1.7%).
Leaders Down on Volume: Info Edge (India) (-2.2%), Future Lifestyle Fsh (-1.1%), and Aavas Financiers (-0.4%).
What do you think? Please email us any questions or comments.
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