Daily Big Picture : Nifty Defends Yesterday’s Low in Range-Bound Session; Reliance Gains as Promoter Stake Rises

Today’s Action

Nifty, 0.2%; Sensex, 0.2%; Nifty Midcap, 0.3%; Nifty Smallcap, 0.3%; and Model Portfolio, 0.7%.

Daily Market Review

Market Status: Rally Attempt

Today, Nifty defended yesterday’s low and managed to trade above it. Though it was a volatile session, Nifty traded in a narrow range. Oil marketing companies lead the gains as crude oil prices eased ~5% after positive developments in Saudi Arabia. INR strengthened ~75bps versus USD. Broader indices also performed reasonably well. Though there have been sharp moves off the bottom in mid- and smallcaps, they are vulnerable to overhead supply issues. Globally, markets have all eyes on the Fed meeting and expect a 25bps rate cut.

On the sectoral front, Nifty Realty (1.5%), PSU Bank (1%), and Metal (1%) were the top gainers. On the downside, Nifty Media (-0.4%) was the top decliner, while Nifty Auto, Pharma, and Pvt Banks briefly closed in the red. The advance-decline ratio was leaned toward advancers. Of the 2,125 stocks traded on the NSE, 927 advanced, 854 declined, and the rest remained unchanged.

Looking forward, we remain cautious about the general market. We are still looking for a follow-through day or Nifty reclaim and hold above its 50- and 200-DMA. On the flip side, if Nifty breaches its correction low of 10,637, we will change the market status to a Downtrend.

Key News

Hcl Technologies: The company won a contract with Aperam, a global player in stainless, electrical and specialty steel. The stock was up 0.3% today.

Britannia Inds.: The stock was down 2.9% after the fitment committee ruled out a tax cut on biscuits. The committee asserted that having two different slabs for biscuits based on the selling price will be prone to evasion.

Reliance Industries: Shares gained 0.7% today following the promoter increasing its stake in the company to 48.87% from 47.29% earlier.

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