Daily Big Picture – Nifty Retakes 50-DMA; Banking and Pharma Stocks Lifts Market

Today’s Action

Benchmark indices recovered after opening in red. Nifty, +0.6%, Sensex, +0.5%, Model Portfolio, 0%; MSI Ind 47, +2.3%.

Daily Market Review

The Nifty and the Sensex posted gains in today’s session. The Indian market opened in red but recovered the loss and ended in green despite RBI governor’s resignation and BJP trailing Congress in state election results.

On the sectoral front, all the indices managed to post gains. Nifty PSU Bank (+2.7%) and Nifty Pharma (2.5%) gained the most. Yesbank (+7.4%) and Sunpharma (+5.8%) were the major gainers whereas Hindustan petroleum (-2.9%) and Indian Oil corporation (-1.8%) were the losers among Nifty50 stocks.

The Nifty Midcap and Smallcap are up 1.7% and 1.8%, respectively.

The advance-decline ratio was in favor of advancers. Of the 2,059 stocks traded on the NSE, 1,249 advanced, 454 declined, and 356 remained unchanged.

The market status has been changed to an {Uptrend Under Pressure} owing to the distribution on bourses. Yesterday, the market witnessed a huge sell-off on higher volume, leading to a distribution day on the Nifty. With that, the distribution day count stands at four on both the Nifty and the Sensex. As the market condition has changed to an Uptrend Under Pressure, investors should proceed ahead with caution. Unless a stock shows exceptional fundamental and technical strength, no new addition to the portfolio is advised.

Stocks in News

Bharti Airtel: The General Tax Directorate of Niger ordered for the closure of company’s offices in Nigeria over a tax dispute. The stock was down 1.6% today.

Cadila Healthcare: Liva pharmaceuticals, a subsidiary of Cadila Healthcare, received approval from USFDA for ulcer treatment injection Ranitidine Injection USP. The stock was up 1.5% today.