Daily Big Picture : Nifty Gains 2.1%, Retakes 11,000; Fin Service and Realty Stocks Lead the Rally

Today’s Action

Nifty, +2.1%; Sensex, +2.2%; Nifty Midcap, +1.6%; Nifty Smallcap, +2.3%; and Model Portfolio, 0%.

Daily Market Review

Market Status: Downtrend 

Nifty reacted positively to the series of announcements by the government last Friday, gained around 230 points in the day and closed near day’s high. Nifty regained the whole of last week’s loss today.

On the sectoral front, barring Nifty Metal (-0.1%), all sectors ended in the green. Nifty Fin Service (+4%), Nifty Realty (+3.7%), and Nifty Bank (+3.7%) were the top performers. Out of 2,130 stocks traded on the NSE, 1,300 advanced, 493 declined, and the rest remained unchanged. Gains in Nifty Midcap (+1.6%) and Smallcap (+2.3%) were in line with market. India VIX declined 4%.

Last Friday, Nifty closed in the green and was considered as day 1 of an attempted rally. Today will be counted as day 2 of an attempted rally, as Nifty stayed above its day 1 low of 10,637. Looking forward, we will shift the market back to a Rally Attempt if Nifty stays above day 1 low (10,637) tomorrow. Afterward, we would like to see a follow-through day before shifting the market back to a Confirmed Uptrend.

Upcoming event:

Aug 30: GDP growth rate for Q1 FY20

Key News

Bharat Heavy Electricals Ltd received an order worth Rs 2,500 crore from NTPC for supply and installation of Flue Gas Desulphurisation (FGD) systems for 13 coal based units at 2,100 megawatt Ramagundam STPS stage I and II in Telangana and 2,600 megawatt Korba STPS stage I, II, and III in Chhattisgarh. The stock was up 4%.

Capacite Infraprojects Infraprojects share price was up 8% as the company got a clean chit from IT department after the search operations.

N C L Industries announced to enter into a joint venture with Qingdao Xinguangzheng Steel Structure Company, to manufacture pre-engineered steel structure in India.NCL will own 70% stake in JV. The stock gained 6.3% today.

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