Daily Big Picture : Nifty Fell Sharply, Closes 2.2% below 200-DMA; SIAM Reports Disappointing Auto Sales Volume in July

Today’s Action

Nifty, -1.7%; Sensex, -1.7%; Nifty Midcap, -2.2%; Nifty Smallcap, -1.6%; and Model Portfolio, 0%.

Daily Market Review

Market Status: Rally Attempt 

Benchmark indices came under intense selling pressure in early trade and continued to drag further as the day progressed, and closed at the day’s low with Nifty closing below 11,000. Nifty closed 1.7% lower despite strong performance from Reliance Industries (+9.7%) that carries ~9% weightage in Nifty50. The major drag for the index was Hdfc Bank (-2.7%) that carries ~11% weightage. The broader market also performed badly with Nifty Midcap and Smallcap falling 2.2% and 1.6%, respectively.

As per the Society of Indian Automobile Manufacturers (SIAM) report, domestic sales of passenger vehicles fell 30.9% to 200,790 units in July. Further, domestic car and CV sales were down 35.95% and 37.48%, respectively. Nifty Auto (-4.0%) was the top decliner followed by Nifty Financial Service (-3.0%), IT (–2.5%), and Bank (-2.5%).

The advance-decline ratio was skewed toward decliners. Out of 2,105 stocks traded on the NSE, 550 advanced, 1228 declined, and the rest remained unchanged.

Looking ahead, we would prefer to see a follow-through day before shifting the market back to a Confirmed Uptrend. On the flip side, if the Nifty breaches its day 1 low of 10,814, the market will be moved back to a Downtrend.

Key Events: CPI data for July is expected to release today and the WPI inflation data is scheduled tomorrow.

Key News