Daily Market Review
Market Pulse: Downtrend
After floundering for most of the day, markets recovered mildly in the last hour to close with still heavy losses on higher volume. Nifty pierced August 2019 lows and made a fresh 52-week low. Brent crude price has declined sharply to less than $35 per barrel with Russia and Saudi Arabia preferring volume over value strategy. European markets opened with a 6–8% loss on benchmark indices. U.S. stock futures are also trading with a ~5% loss. U.S. 10-year treasury yield continued to slide lower, dropping to a new low of 0.34%. India’s 10-year government bond yield breached a 6% mark.
As Nifty continues to make new lows, we are yet to see day one of an attempted rally. We will wait for a blue or pink rally day to consider day one of an attempted rally. On sectoral front, Nifty Metal (-7.7%) and Media (-6.6%) led the way down. Nifty Auto, Bank, Realty, FMCG, and Pharma booked losses of 3–5% each. Of 2,175 stocks traded, 273 advanced, 1,608 declined, and the remaining traded flat.
We continue to remain in a Downtrend and suggest a cautious approach until the general market conditions improve. Without trying to predict and decode stories, we will take what the market gives us and continue to monitor unfolding conditions. In our portfolio, we continue to hold high relative strength quality ideas trading above logical support and consolidating in a downtrend market. We may book profit or cut losses if any of our portfolio stocks show technical weakness.
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