Daily Big Picture : Nifty Finds Support at 200-DMA; Bank Stocks Continue to Underperform

Today’s Action

Nifty, -0.4%; Sensex, -0.5%; Nifty Midcap, -0.1%; Nifty Smallcap, -0.3%; and Model Portfolio, -0.2%.

Daily Market Review

Market Status: Confirmed Uptrend

Nifty opened lower taking cues from global markets and hovered around 11,300 through the day and closed with 0.4% loss. However, Nifty escaped a distribution day as volume was less compared to previous trading session. Broader market indices performed in line with Nifty and closed in negative. We need to monitor distribution day count in the coming few weeks. If the count increases, we might need to cautiously tread in these markets looking at price patterns and volume parameters to determine the strength and direction of stocks/sectors.

On the sectoral front, Nifty Realty gained around 1.1% after losing more than 4% yesterday. Nifty Bank continued to underperform posting a loss of 1.1%. The advance-decline ratio was skewed toward decliners. Of the 2,131 stocks traded on the NSE, 709 advanced, 1,081 declined, and the rest remained unchanged.

With Nifty in a Confirmed Uptrend, we have maintained a positive view toward the market. However, amid continued volatility in the market, investors should restrict themselves to invest in fundamentally sound stocks with strong growth prospects and be very selective in their approach.

Key event to watch for during the week:

         RBI bi-monthly MPC outcome tomorrow

Key News

Religare Enterprises announced to sell entire stake in Religare Finvest Ltd., its NBFC arm, to TCG Advisory Services for around Rs 330 crore. The stock was up 5%.

Biocon and Mylan N.V. launched Semglee, the first insulin glargine biosimilar in Australia available on the Pharmaceutical Benefits Scheme. The stock advanced 4.5%.

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

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