Daily Big Picture : Nifty Falls below 11,000; All Sectoral Indices Closes in the Red

Today’s Action

Nifty, -0.9%; Sensex, -0.7%; Nifty Midcap, -1.6%; Nifty Smallcap, -1.9%; and Model Portfolio, 0%.

Daily Market Review

Market Status: Rally Attempt 

Nifty, after hovering around 11,000 in the early hour, moved downwards. It continued to decline further and closed around the day’s low.

On the sectoral front, all sectors underperformed today. Nifty PSU(-3%), Nifty Metal (-2.9%) and Nifty Realty (-2%) were the top decliners. Steel Authority Of India(-8.4%) led Nifty Metal’s fall followed by Jindal Steel & Power (-4.9%). The advance-decline ratio was tilted toward decliners. Out of 2,113 stocks traded on the NSE, 441 advanced, 1,341 declined, and the rest remained unchanged. In the broader market, Nifty Midcap (-1.6%) and Smallcap (-1.9%) both closed in the red. India VIX advanced 2.3%.

Looking ahead, we would prefer to see a follow-through day before shifting the market back to a Confirmed Uptrend. Along with that, we would also like to see Nifty reclaim its 200-DMA to confirm the constructive development of the market.

Upcoming events: Aug 23: FX Reserve (USD)

Key News

Housing Dev.&.Infr. fell 20% as the Bank of India’s insolvency plea against the company was accepted by the National Company Law Tribunal (NCLT).

Gati lost 2.2% after rating agency CARE revised its outlook of the company’s long-term loans to negative from stable. Further, the rating on short-term bank facilities (Rs 5 crore) was downgraded to A3.

The IL&FS board is hoping the National Company Law Tribunal will give the green signal for selling seven wind power units to Japan’s Orix Corporation for Rs 4,800 crore. The proceedings will help the company reduce its debt.

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