Daily Big Picture : Nifty Retakes 50-DMA; IT and Auto Stocks Lead Gains

Today’s Action

Nifty, +0.8%; Sensex, +1.0%; Model Portfolio, +0.2%; MSI Ind 47, +0.7%; Nifty Midcap, +0.4%; Smallcap, +0.8%.

Daily Market Review

Market Status: Rally Attempt

Benchmark indices traded higher today with both the Nifty and the Sensex 0.8% and 1%, respectively. The domestic market has taken cues from the global market following Donald Trump’s decision to extend any hike in tariff on Chinese goods.

On the sectoral front, Nifty IT (+2.0%) was the top performer led by Tata Consultancy Svs. (+3.1%), Infosys (+2.7%), and Hcl Technologies (+1.5%) followed by Nifty Auto(+1.1%), Bank (+1.1%), Financial Services (+0.8%), and Pharma (+0.5%).

Sugar stocks continued their dominance after the government increased the MSP by 7%  to Rs 31 per kg. The increase in MSP will help sugar companies to post strong earnings growth. Dalmia Bht.Sug.& Inds. (+14.7%), Dhampur Sugar Mills (+9.4%), and Balrampur Chini Mills (+3.1%) are some of the top performing stocks in the market.

The market status remained unchanged. We will look for a legitimate follow-through day after which we will change the market status to a Confirmed Uptrend. We will downgrade the market to a Downtrend if it breaches the 10,583.60 level (low of Day 1 of the attempted rally).

The advance-decline ratio was in favor of gainers. Of the 2,083 stocks traded on the NSE, 1,064 advanced, 675 declined, and 344 remained unchanged.

Stocks in News

Adani Enterprises: The Company gained 3.1% today as it won bids for five airports Ahmedabad, Jaipur, Lucknow, Mangalore and Thiruvananthapuram.

Tata Motors: The Company plans to launch a premium hatchback model named Altroz in the middle of 2019 which will compete with the likes of Maruti Suzuki Baleno, Hyundai i20 and Honda Jazz. The stock gained 0.8%.

Leaders Up on Volume: N R B Bearings (+6.2%), Dcb Bank (+5.7%), and Praj Industries (+3.6%)

Leaders Down on Volume: Aurobindo Pharma (-3.1%), Icici Lombard General Ins Co (-1.7%), and Capri Global Capital (-0.5%)

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

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