Today’s Action
Nifty, +1.6%; Sensex, +1.7%; Model Portfolio, 0%; Nifty Midcap, +0.7%; Smallcap, +1%
Daily Market Review
Market Status: Rally Attempt
Nifty, after trading flat in early hours, gained sharply in final hours and closed above 11,000. Gains in index heavyweights like Reliance (+3.9%), TCS (+2%), and HDFC Bank (+2.3%) lifted the market. Nifty is now only 1% below 200-DMA. In the broader market, Midcap (+0.7%) and Smallcap (+1%) also closed in the green.
Today, all sectoral indices closed in positive territory. Nifty Auto (3%), IT (1.8%), and Realty (+1.8%) were the top gainers. Nifty FMCG, Media, Metal, Energy, Bank, and Pharma were each up 1–1.5%. The advance-decline ratio was skewed toward advancers. Out of 2,096 stocks traded on the NSE, 1,055 advanced, 690 declined, and the rest remained unchanged.
Nifty managed to stay above Tuesday’s (day 1) low of 10,814, yesterday as well as today. As today’s action qualifies as day three of an attempted rally, we are changing the status to a Rally Attempt from a Downtrend. Looking ahead, we would prefer to see a follow-through day before shifting the market back to a Confirmed Uptrend. On the flip side, if the Nifty breaches its day 1 low of 10,814, the market will be moved back to a Downtrend.
Key News
Ultratech Cement: The Company reported Q1 FY20 results during market hours. It beat consensus on all fronts. Revenue grew 14.8% y/y. The EBITDA was up 57% y/y while EBITDA margin expanded 700bps y/y to 26%. The stock was down 2.5%.
Tata Steel: The Company reported Q1 FY20 results. PAT was down 64.3% y/y to Rs 693 crore, below consensus. The revenue grew only 1.3% y/y due to declining steel prices and subdued economic activity in India and Europe. EBITDA is down 15.4% y/y to Rs 5,377 crore and margin contracted 294bps y/y to 14.96%. The stock was down 3.8%.
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