Daily Big Picture : Nifty Fails to Defend 200-DMA; IndusInd’s Q2 Results In Line with Consensus

Today’s Action

Nifty, -0.7%; Sensex, -0.8%; Nifty Midcap, -1.2%; Nifty Smallcap, -0.5%; and Model Portfolio, -0.4%.

Daily Market Review

Market Status: Confirmed Uptrend

Markets failed to build on yesterday’s gains and closed below 200-DMA. Although, Nifty remained under selling pressure, it traded in a narrow range, posting a loss of 0.70%. Heavyweight stock Reliance helped Nifty with a gain of 2.9%. There is no change in distribution day count today as volume was lesser than yesterday’s session. In the broader market, both Midcap and Smallcap closed with losses of 1.2% and 0.5%, respectively.

All sectoral indices closed negative barring Nifty Pharma, which remained flat. Nifty Banks continue to underperform with a loss of 2.7%. The advance-decline ratio was skewed towards decliners. Of the 2,129 stocks traded on the NSE, 644 advanced, 1139 declined, and the rest remained unchanged.

Going forward, we would like Nifty to reclaim its 200-DMA and hold above it. Further, we would also like to see decent improvement in market breadth which would signal increasing strength in the market. On the flip side, if Nifty registers additional distribution days, it will be a subtle sign of weakness in the market.

Key News

Indusind Bank posted Q2 results for the current fiscal year, during market hours. PAT stood at Rs 1,383 crore, which was in line with consensus. NIM improved 5bps q/q to 4.1%. Loan and credit growth stood at 21% y/y each. The stock was down 6.1%.

Bank Of Maharashtra announced a reduction in its repo-linked lending rate (RLLR) by 0.25% to 8.20% from 8.45% earlier, effective from October 8. However, base rate has been kept unchanged at 9.50% per annum. The stock was down 4.2%.

Larsen & Toubro bagged contracts worth around Rs 2,500 crore for its Power Transmission, Distribution, Metallurgy, and Material Handling businesses from domestic as well as international markets. The stock declined 0.10%.

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