Today’s Action
Benchmark indices ended in the red today. Nifty, -1.1%, Sensex, -1.0%, Model Portfolio, +0.1%; MSI Ind 47, -0.8%.
Daily Market Review
The Nifty 50 ended its five-day gaining streak. The decline can be attributed to the weakness in global indices and muted auto sales for the month of December.
On the sectoral front, all the 11 sectors ended in red. Nifty Metal (-3.4%) and Auto (-3.1%) were the top losers. Sun Pharm.Industries (+1.5%) and Bharti Infratel (+0.8%) were the major gainers whereas Eicher Motors (-8.8%) and Jsw Steel (-5.0%) were the major losers among Nifty 50 stocks.
The Nifty Midcap and Smallcap were down 1.2% and 1.0%, respectively.
The advance-decline ratio was in favor of decliners. Of the 2,064 stocks traded on the NSE, 549 advanced, 1134 declined, and 381 remained unchanged.
The market remains in an Uptrend Under Pressure. Today, the Nifty added a distribution day as the index fell more than 0.2% on more volume. Currently, the distribution count stands at four on Nifty. We will change the status to a Downtrend, if 2-3 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
Jet Airways (India) The Company said it defaulted on payments to the consortium of banks led by SBI. ICRA downgraded long-term rating to D from C, short rating to D from A4. The stock was down 6.1% today.
Indian Oil: The Company’s chairman Sanjiv Singh said that the Ennore LNG terminal is complete and will be commissioned once the dredging of the channel is complete. The channel will bring cryogenic ships that carry natural gas in liquid form to the port. IOC owns 95% of Ennore LNG import terminal, remaining is held by Tamil Nadu Industrial Development Corporation (TIDCO).
Vedanta: Tamil Nadu government moved to Supreme Court to challenge the order of National Green Tribunal (NGT) allowing re-opening of the Company’s copper plant in Tuticorin. The stock was down 4.4% today.
Leaders Up on Volume: Iol Chemicals & Pharms. (+4.6%) and N R B Bearings (+0.9%)
Leaders Down on Volume: Merck (-3.8%) and Container Corp.Of India (-2.4%)
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