Nifty, 1.2%; Sensex, +1.3%; Model Portfolio, +1.3%; Nifty Midcap, +1.6%; Smallcap, +1.5%
Daily Market Review
Market Status: Confirmed Uptrend
Benchmark indices recovered sharply from early losses and extended gains to trade at day’s high. The rally was broad-based and all sectors contributed to the cause. In early trading, Nifty fell led by the IT sector, after a media report stating that the U.S. is planning to cap H-1B visas to counter Indian government’s policy of data localization.
Nifty Pharma (+3.1%) was the top gainer today led by Sun Pharm.Industries (+4.1%) and Cipla (+3.3%). Among others, Nifty Auto (+2.5%), Metal (+1.9%), and Bank (+1.4%) followed the suit. The advance-decline ratio was in favor of gainers. Of the 2,093 stocks traded on the NSE, 1,118 advanced, 665 declined, and 310 remained unchanged. This improvement in market breadth is a good sign for further advance.
Today, Nifty just closed below its 21-DMA, which is placed at 11,860.75. Looking forward, Nifty retaking its 21-DMA would be positive for the market. We will also be looking for a follow-through day to enhance our confidence in the market.
Adani Green Energy: The Company’s arm Adani Renewable Energy Park has bagged a 130-MW wind power project in an auction by state-owned Solar Energy Corporation of India (SECI). The stock was up 3%
Glenmark Pharmaceuticals: The USFDA approved an acne treatment drug Clindamycin Phosphate Foam. The approved product is a generic version of Mylan Pharmaceutical’s Evoclin Foam. According to the Company’s press release for the 12 months to April 2019, Evoclin Foam achieved annual sales of approximately $17M. The stock was up 2%.