Today’s Action
Nifty, -1.3%; Sensex, -1.3%; Model Portfolio, -2%; Nifty Midcap, -1.2%; Smallcap, -1.6%.
Daily Market Review
Market Status: Confirmed Uptrend
Nifty corrected 150 points and closed below its 50-DMA. Out of 50 stocks in the index, 46 close in the red. Nifty Midcap and Smallcap fell 1.2% and 1.6%, respectively, and are trading below their 50-and-200-DMA.
Though Nifty closed below its 50-DMA, we will wait to change the market status to an Uptrend Under Pressure as the distribution day count is low (two) and Nifty is less than 4% off highs. Said that, we would be hesitant to commit new capital till technical and market breadth improves.
On the sectoral front, Nifty Metal (-2.8%), Auto (-1.7%), and PSU Bank (-1.6%) were among top losers. None of the sectoral indices managed to close in positive territory.
The advance-decline ratio was skewed toward decliners. Of the 2,112 stocks traded on the NSE, 409 advanced, 1,369 declined, and 334 remained unchanged.
Key News
Reliance Capital sold 10.75% stake in Reliance Nippon Life Asset Management Ltd (RNAM) for Rs 1,450 crore. The stock was down more than 5%.
Bharti Airtel and Vodafone Idea were down 2.6% and 3.2%, respectively, as the Digital Communications Commission, approved imposing a penalty on both the firms for not providing points of interconnection to Jio.
Leaders Up on Volume: Vinati Organics (+1.9%), Century Textiles & Inds. (+1.6%)
Leaders Down on Volume: Pvr (-4.8%), Jk Cement (-2.5%), and Axis Bank (-2.9%)
What do you think? Please email us any questions or comments.
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