Daily Big Picture : Nifty Rallies 1.1% After a Two-Day Breather; PSU Banks Outperform

Today’s Action

Nifty, +1.1%; Sensex, +1.1%; Model Portfolio, +1.3%; MSI Ind 47, +0.9%; Nifty Midcap, +1.1%; Smallcap, +1.2%.

Daily Market Review

Market Status: Rally Attempt

Benchmark indices sharply recovered after falling for two-straight days. After a positive opening, Nifty (+1.1%) and Sensex (+1.1%) ended with strong gains. Smallcap (+1.2%) and Midcap (+1.1%) gained in line with benchmark indices.

On the sectoral front, Nifty PSU Banks (+3.1%) outperformed other sectors by a margin though Nifty Pvt Banks (+2.1%) also posted strong gains. Nifty FMCG (+0.1%) and IT (-0.4%) continued to underperform.

With respect to market direction, we will look for a legitimate follow-through day after which we will change the market status to a Confirmed Uptrend. We will also keep a watch on benchmark indices to ascertain market strength.

The advance-decline ratio was in favor of gainers. Of the 2,085 stocks traded on the NSE, 991 advanced, 754 declined, and 340 remained unchanged.

Stocks in News

Reliance Industries: According to a news report, ITC sold its brand John Players to Reliance Industries Limited as part of its restructuring plan. Reliance ended 3.2% higher today.

Mindtree: Today, the Company’s board decided not to go ahead with the share buyback, and decided to form a committee to recommend the board on the offer made by L&T. Meanwhile, Axis Capital and Citigroup, managers of the offer, submitted a detailed public announcement to the exchanges for[D1]  the acquisition of Mindtree’s shares by L&T through an open offer. Mindtree ended 0.4% higher today.

Leaders Up on Volume: Karnataka Bank (+5.3%), Tube Investments Of India Ltd (+1.3%), and Jubilant Foodworks (+1.7%)

Leaders Down on Volume: Upl (-1.0%), Pvr (-1.3%) and Heidelbergcement India (-0.5%)

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

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