Nifty, +0.2%; Sensex, +0.2%; Model Portfolio, -0.2%; Nifty Midcap, -0.3%; Smallcap, -0.2%
Daily Market Review
Market Status: Uptrend Under Pressure
Nifty closed in the green for the third consecutive session, but finds resistance near its 50-DMA. After hitting an intraday high of 11,705, Nifty closed at 11,687. Nifty Midcap (-0.3%) and Smallcap (-0.2%) saw selling pressure. Distribution remains at three days on the Nifty.
Nifty PSU Bank (+1.1%) and FMCG (+0.8%) were the best performing sectors. On the flip side, Nifty Auto (-1%) and Pharma (-0.2%) closed lower. The advance-decline ratio leaned toward decliners. Of the total 2,098 stocks traded on the NSE, 849 advanced, 897 declined, and the rest ended flat.
Looking forward, we would like to see Nifty retake its 50-DMA with healthy market breadth. On the downside, we would move the market to a Downtrend if two-three distribution days are added from here.
Tata Elxsi: For Q1 FY20, the Company’s net profit declined 31.5% y/y to Rs 48.79 crore. Revenue fell 5.5% y/y to Rs 361.71 crore. The stock was down 9% after it reported results during market hours.
Larsen & Toubro: The Company bagged order for desalination plant from Gujarat Industrial Development Corporation. It will be a 100 MLD desalination plant that falls under “significant” category (ranges between Rs 1,000 crore and Rs 2,500 crore as per its classification).
Strides Pharma Science: The stock fell 3% after the US FDA found adulteration and “significant violations” of current good manufacturing practice regulations at its Puducherry plant.