Today’s Action
Nifty, -0.5%; Sensex, -0.5%; Nifty Midcap, -0.4%; Nifty Smallcap, +0.3%; and Model Portfolio, -0.3%.
Daily Market Review
Market Status: Rally Attempt
The benchmark indices, tracking global markets opened higher. However, they lost momentum, ending near the day’s low. The Nifty and Sensex were down 0.5% each. In the broader market, Nifty Midcap was down 0.4% and Smallcap gained 0.3%. Currently, Nifty is trading ~2% below its 50- and 200-DMA. From August, the 200-DMA is acting as a strong resistance; reclaiming the 200-DMA will be a constructive set up.
The weakness was seen across sectors. Nifty Financials (+0.2%) and PSU Bank (+0.2%) were the top gainers. On the flipside, Nifty Auto (-1.8%) and FMCG (-0.7%) were the top losers. The Nifty Auto index, which retook its 50-DMA yesterday, was able to end above it.
The advance-decline ratio was skewed towards advancers. Of the 2,126 stocks traded on the NSE, 975 advanced, 828 declined, and the rest remained unchanged.
Looking forward, we would like to see an improvement in market breadth and Nifty trading above its 21-DMA. If a follow-through day occurs, we will shift the market to a Confirmed Uptrend. On the flip side, if Nifty breaches its correction low of 10,637, we will change the market status to a Downtrend.
Key News
J M Financial – It has acquired compulsory convertible debentures (CCDs) issued by its subsidiary JM Financial Asset Reconstruction Company (JMFRC) for Rs 183.37 crore. The stock was up 1.2% today.
Apollo Hosps.Enterprise – The company’s promoters sold around 3.6% stake to bring down debt and associated pledges. After the transaction, promoter holding stands at 30.8%. The pledge position will come down to around 20% from 76% once the proceeds from this and the Apollo Munich transaction (expected by end-October) transactions are realized. The stock was down 2.6% today.
What do you think? Please email us any questions or comments.
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