Daily Big Picture : Nifty Gains After Nine Consecutive Loss Days; PSU Banks Advance, IT Stocks Decline

Today’s Action

Nifty, +0.7%; Sensex, +0.6%; Model Portfolio, +0.8%; Nifty Midcap, +0.5%; Smallcap, +0.7%; MSI IND47, +0.3%.

Daily Market Review

Market Status: Uptrend Under Pressure 

Today was a highly volatile session as the Nifty swung around 200 points. Intraday, the Nifty breached 100-DMA, but it recovered from there and closed 0.7% higher. There was a flip in sectoral performance from yesterday’s session. Nifty PSU Banks and Pharma, who were top losers yesterday, gained the most today. The Nifty mid and smallcap indices closed 0.5% and 0.7% higher, respectively. The advance-decline ratio was marginally in favor of advancers.

Considering the Nifty breaching its 50-DMA and increasing distribution, we downgraded the market to an Uptrend Under Pressure last Wednesday. We’ll further downgrade the market if the distribution day count increases to more than 5-6 or if the Nifty breaches 200-DMA (11,035).

Key News

Edelweiss Fnsr. reported its Q4 FY19 results today.  PAT was down 3.3% y/y to Rs 232 crore. The stock ended 2.8% lower today. At the end of FY19, the book sizes of retail and corporate credit were more than Rs 18,000 crore each. The stock is trading below its 50-and-200 DMA, and today it was down ~4%.

Jet Airways (India) The Deputy CEO and CFO of Jet Airways Mr. Amit Agarwal resigned from the company, effective from May 13, 2019. The stock was down more than 7% today.

Leaders Up on Volume: Manappuram Finance (+7.3%), Srf (+5.4%), and Muthoot Finance (+4.2%),

Leaders Down on Volume: Karnataka Bank (-5.0%), Bata India (-3.8%), and RBL Bank (-1.3%).

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

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