Nifty, +0.7%; Sensex, +0.7%; Model Portfolio, +0.3%; Nifty Midcap, +0.7%; Smallcap, +0.3%
Daily Market Review
Market Status: Uptrend Under Pressure
Benchmark indices closed positive today as the market participants cheered the US Federal reserve chairman’s comment on a possible rate cut ahead. The rally was driven by strong gains in Indusind Bank (+3.6%), Housing Development Fin. (+1.5%), and Hdfc Bank (+0.8%). In the process, Nifty retook its 100-DMA (crucial support), albeit on low volume.
On the sectoral front, all the sectors closed in the green with Nifty Media (+3.9%) emerging as the top gainer followed by Nifty Auto (+1.9%) and Metal (+1.8%). The advance-decline ratio leaned toward gainers. Of the total 2,085 stocks traded on the NSE, 912 advanced, 805 declined, and the rest ended flat.
On July 8, we changed the market status to an Uptrend Under Pressure from a Confirmed Uptrend, driven by factors such as Nifty breaching its 50-DMA, accumulation of distribution days, and stalling days. The distribution day count now stands at two on the Nifty, with one day expiring today. From here, if 2-3 more distribution days are added, we will change the status to a Downtrend. The status will be back to a Confirmed Uptrend if Nifty retakes 12,104 (high during the recent rally).
Tata Motors: The stock gained 3.4% today. The Company said its global sales fell 5% y/y to 95,503 vehicles in June. Passenger vehicle sales increased 1% to 56,657 vehicles.
Aurobindo Pharma: The stock gained 1.4% today after the Company announced the launch of Cinacalcet Hydrochloride tablets in the U.S. market.
Vedanta: The Company in its shareholders meet today announced that it will spend Rs 50,000 crore in the medium term to increase output by 50%. Vedanta also aims to increase aluminum output by 50% to 3MT/year. The Company will fund this investment from internal cash flows.