Nifty, -0.8%; Sensex, -0.5%; Model Portfolio, -1.1%; Nifty Midcap, -1%; Smallcap, -1.1%
Daily Market Review
Market Status: Uptrend Under Pressure
Nifty opened marginally in the green, led by gains in the Bank Nifty Bank, after ICICI Bank (+3.3%) reported better-than-expected results for Q1 FY19. Selling pressure intensified and Nifty declined 1% off highs and found support near its 200-DMA, closing 0.8% lower. Though Nifty was down more than 0.2%, but volumes were low compared to Friday’s session, thereby escaping a distribution day. The current distribution day count remains at four.
In the recent weeks, Nifty has not been able to hold gains and market breadth is shrinking, which indicates a weak market.
On the sectoral front, barring Nifty IT (+0.4%), all the sectors closed in a negative territory. Nifty Auto (-3.5%), Media (-3.3%), and Metal (-3%) were top decliners. In the broader markets, Nifty Midcap (-1%) and Smallcap (-1.1%) were also under selling pressure. The advance-decline ratio was skewed toward decliners. Out of 2,110 stocks traded on the NSE, 1,274 declined, 504 advanced, and the rest remained unchanged.
Looking forward, we would like to see Nifty taking support near its 200-DMA (~0.2% below the current level). 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. We would change the market status to a Downtrend if the Nifty breaches its 200-DMA.
State Bank Of India: The bank has cut deposit rates on various tenors. The rates have been reduced by 50–75bps for up to six months of deposits. For longer tenors, rates are reduced by 20–35bps. The cuts have been made due to falling interest rates. The stock was up 0.4%.
Havell’s India: The stock fell 4.7% as Q1 FY20 results missed expectations. PAT was down 16.3% y/y. Revenue grew 4.5% y/y to Rs 2,717 crore, while EBITDA fell 10.3% y/y to Rs 279.2 crore, and margin contracted 170bps to 10.3%.
Pnb Housing Finance: The Company said in a regulatory filing that it has raised $100M from International Finance Corporation (IFC) to finance the purchase of affordable housing projects. The stock was down 1.3%.