Daily Big Picture : Nifty Fell Over 400 Points Intraday; FMCG and Metal Stocks Drag

Today’s Action

Nifty, -0.7%; Sensex, -0.8%; Model Portfolio, +0.0%; Nifty Midcap, -0.2%; Smallcap, -0.2%.

Daily Market Review

Market Status: Uptrend Under Pressure 

Today’s session was volatile because of the counting of votes. The Nifty made a new all-time high of 12,041, but succumbed to selling pressure across the sectors. As the Nifty fell more than 0.2% on higher than yesterday’s volume, today’s session qualifies as a distribution day.

On the sectoral front, barring Nifty Media (+1.3%) and Realty (+0.5%), all the sectors ended in the red. Nifty FMCG (-1.7%) and Metal (-1.5%) lost the most.

The advance-decline ratio was in favor of decliners. Of the 2,097 stocks traded on the NSE, 810 advanced, 920 declined, and 367 remained unchanged.

Currently, the market is in an Uptrend Under Pressure. We might change the status to a Confirmed Uptrend once the previous high (11,856) is retaken. Increase of distribution day count to 7-8, might force us to change the status to a Downtrend.

Key News

Reliance Capital: The Company to sell its stake in Reliance Nippon Life Asset Mgmt Ltd to Nippon Life Insurance of Japan. It will receive around Rs 6,000 crore from the sale, which will help reduce its debt by 33%. The transaction is subject to regulatory approvals. The stock was up 2.8% today.

Cadila Healthcare: The Company has received approval from the U.S. FDA to market Esomeprazole Magnesium delayed-release capsules, used to treat acid reflux. The drug will be manufactured at its Ahmedabad facility. The stock ended flat today.

Leaders Up on Volume: Bandhan Bank (+2.7%), Jk Cement (+2.6%), and Acc (+1.5%).

Leaders Down on Volume: Heidelbergcement India (-4.7%), Bajaj Finserv (-2.5%), and Icici Lombard General Ins Co (-0.2%).

What do you think? Please email us any questions or comments.

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