Nifty, -0.2%; Sensex, -0.04%; Model Portfolio, +0.3%; Nifty Midcap, +0.4%; Smallcap, +0.1%
Daily Market Review
Market Status: Uptrend Under Pressure
Nifty gained ~1% in early hours, but selling pressure intensified later during the day, and it closed 120 points off-highs. This action of indices not being able to hold the gains indicates a weak market. Though volumes were higher compared to yesterday’s session, but the decline was less than 0.2%. Hence, Nifty escaped a distribution day. The current distribution day count remains at five.
On the sectoral front, Nifty Pharma (+2.2%) and Media (+1.1%) were the top gainers. On the flip side, Nifty Metal (-1%) and PSU Bank (-1%) were top decliners. In the broader markets, Nifty Midcap (+0.4%) and Smallcap (+0.1%) managed to close in the green. But the advance-decline ratio leaned toward decliners. Out of 2,103 stocks traded on the NSE, 982 declined, 788 advanced, and rest remained unchanged.
Looking forward, the market can find support near its 200-DMA (~1% below the current level). We would change the market status to a Downtrend, if the Nifty breaches its 200-DMA. One distribution day expires at the close tomorrow. A rebound from the current level or its 200-DMA on above average volume, without any further addition of distribution days will be positive for the market.
Bajaj Finance: The company reported Q1 FY20 result during market hours. PAT rose 43% y/y to Rs 1,195 crore, above estimates. NII grew 43% y/y to Rs 3,695 crore. AUM increased 41% y/ to Rs 1.29 lakh crore. But, the asset quality was poor in Q1 FY20, compared to Q1 FY19. NNPA came at 0.64% in Q1 FY20 versus 0.44% in Q1 FY19. The stock was down 4% and trading below 50-and 100-DMA, but 7% above 200-DMA.
Tata Motors: The Company reported Q1 numbers today, after market hours. Revenue was above estimates, both EBITDA and net income missed consensus. Its JLR unit posted weak set of numbers with net loss coming in at £402M, missing consensus of £230M. The stock was down 4.6%.