Today’s Action:
The Nifty and the Sensex each fell 1% after opening positive in the morning. Model Portfolio, -1.3%; MSI Ind 47, -0.4%.
Daily Market Review:
The Nifty and the Sensex each fell 1% today. Except Nifty IT, all other indices ended in the red. Nifty PSU banks and Nifty Auto were the top losers. Tata Motors(-4.6%) was the top loser among auto stocks followed by Hero Motocorp (-4.2%). Small PSU banks lost the most among banking stocks, with major losers being Oriental Bk.Of Commerce (-9.0%) and Bank Of India (-5.2%). Hindalco Industries (-4.1%) was the top loser among metal stocks.
Nifty Midcap and Nifty Smallcap lost 1% and 1.1%, respectively, in line with frontline indices.
The market status remains unchanged at a Confirmed Uptrend. Repeated down days with high volume may shift the market to an Uptrend Under Pressure, However, today’s loss on benchmark index was accompanied by a volume which was weaker than average volume as well as volume in the previous session. Although a Confirmed Uptrend is a green signal to enter the market, it is important that investors don’t play all their cards at once. We would suggest adopting an investment approach where you begin with a small allocation and increase it as and when we advance further with respect to market direction.
The advance-decline ratio was in favor of losers. Of the 2,073 stocks traded on the NSE, 640 gained, 1,105 declined, and 328 remained unchanged.
Stocks in News:
Titan Company reported it Q2 numbers on Friday after market hours. Net profit was a miss, however, EBITDA beat consensus estimates. Lower PAT was due to one-time provisioning on IL&FS exposure. The stock ended 5.6% up.
Jet Airways (India) traded 7% lower during today’s session before ending 5.6% lower ahead of the announcement of its Q2 results today. The Company made a net loss in Q1 FY2019 and profitability for Q2 FY2019 is likely to be subdued owing to higher crude prices and lower fares.
Hindustan Petroleum ended 6.7% lower today after oil marketing companies sustained losses on recovery in crude oil prices today. Oil prices recovered after Saudi Arabia announced supply cut for December.
Action in Leading Stocks
Leaders Up on Volume: Radico Khaitan (+4.9%), Tech Mahindra (+2.5%), N R B Bearings (+2.3%)
Leaders Down on Volume: Jk Paper (-2.4%), Iol Chemicals & Pharms. (-0.6%)
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