Daily Big Picture : Nifty Ends 0.4% Lower in Volatile Trade; PSU Banks Lead the Losses

Today’s Action

Nifty, -0.4%; Sensex, -0.7%; Model Portfolio, -0.4%; MSI Ind 47, -0.4%; Nifty Midcap, -0.1%; Smallcap, -0.8%.

Daily Market Review

Market Status: Rally Attempt

Benchmark indices were highly volatile in today’s session but recovered materially from their day’s lows toward the end. The Nifty and the Sensex lost 0.4% and 0.7%, respectively, whereas the Nifty Midcap and Smallcap lost 0.1% and 0.8%, respectively.

Cement stocks continued their positive trend with Ultratech Cement leading the gains. On the sectoral front, Nifty PSU Bank (-1.5%) was the top loser after Nifty Realty (-1.6%). Nifty Financial Services (-1.0%) and Bank (-0.8%) lost in tandem. Nifty Auto (+0.3%) gained moderately followed by Nifty Metal (+0.1%) and Nifty Pharma (+0.2%), which extended nominal gains.

The market status remained unchanged. We will look for a legitimate follow-through day after which we will change the market status to a Confirmed Uptrend. We will downgrade the market to a Downtrend if it breaches the 10,583.60 level (low of Day 1 of the attempted rally).

The advance-decline ratio was in favor of losers. Of the 2,060 stocks traded on the NSE, 605 advanced, 1,115 declined, and 340 remained unchanged.

Stocks in News

Britannia Inds.: The index management sub-committee of National Stock Exchange decided to replace HPCL with Britannia Industries in the Nifty 50 Index. The stock ended 0.8% higher today.

Dewan Housing Finance: The stock ended 4.5% lower today after the rating agency ICRA downgraded the Commercial Papers issued by the Company. The agency quoted concerns over the Company’s ability to raise money to expand its portfolio.

Reliance Industries: Reliance Jio has partnered with Ciena, a U.S.-based company in optical transportation space.. Reliance Jio will use Ciena’s transport SDN (Software-Defined Network) technology. The deployment of this technology will make Jio’s transport infrastructure flexible and fit for scale-up using advanced technologies in the coming future.

Leaders Up on Volume: Info Edge (India) (+4.3%), Aurobindo Pharma (+1.5%), and N R B Bearings (+0.7%)

Leaders Down on Volume: Capri Global Capital (-2.6%), Karnataka Bank (-2.3%), and Housing Development Fin. (-2.2%)

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