Daily Big Picture – Nifty Ends Below its 200-DMA; Tata Power Gets Extension to Supply Power to BEST

Today’s Action 

Benchmark indices ended in the red today. Nifty, -1.1%, Sensex, -1.1%, Model Portfolio, +0.4%; MSI Ind 47, -0.3%.

Daily Market Review 

The Nifty 50 ended close to its day’s low. The last time Nifty lost more than one percent on consecutive days was in October. Weakness in global markets, weak Chinese economic data and muted auto sales for the month of December are some of the factors that weighed down the market.

On the sectoral front, all the 11 sectors ended in red. Nifty Metal (-2.3%) and Media (-1.9%) were the top losers. Bharti Infratel (+2.8%) and Bajaj Auto (+0.4%) were the major gainers whereas Eicher Motors (-4.5%) and Indian Oil (-3.4%) were the major losers among Nifty 50 stocks.

The Nifty Midcap and Smallcap were both down 0.8%.

The advance-decline ratio was in favor of decliners. Of the 2,062 stocks traded on the NSE, 553 advanced, 1,148 declined, and 361 remained unchanged.

The market remains in an Uptrend Under Pressure. Today, the Nifty escaped a distribution day owing to lower volume compared to yesterday’s session. Currently, the distribution count stands at four on the Nifty. We will change the status to a Downtrend, if 1-2 more distribution days are added. On the other hand, the market will be moved to a Confirmed Uptrend if the Nifty retakes the 10,985 level (its high during the recent rally).
As the market is in an Uptrend Under Pressure, investors should proceed ahead with caution. Unless a stock shows exceptional fundamental and technical strength, no new addition to the portfolio is advised.

Stocks in News

Alembic Pharmaceuticals: The Company received approval from the U.S. FDA for a drug (Pramipexole Dihydrochloride) used to treat Parkinson’s disease. The stock was up 0.3% today.

Tata Power: The Company received extension until March 2024 of power purchase agreement with Brihanmumbai Electric Supply and Transport (BEST). The stock was down 0.9% today.

Leaders Up on Volume: Kennametal India (+4.9%) and Info Edge (India) (+4.2%)

Leaders Down on Volume: L&T Technology Services (-4.7%) and Pvr (-3.6%)

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