Nifty, +0.8%; Sensex, +0.8%; Model Portfolio, 0%; Nifty Midcap, +2%; Smallcap, +1.8%
Daily Market Review
Market Status: Downtrend
After a weak start, Nifty gained 200 points and reclaimed 11,000. But, it trimmed gains in last hour of trade and closed only 80 points (0.7%) higher. In the broader market, Midcap (+2%) and Smallcap (+1.8%) were able to sustain gains and closed near their days high.
On the sectoral front, barring Nifty Media (-1.2%) and Energy (-0.2%), all the sectors closed in the green. Nifty Auto, Banks, Financial Services, and Realty gained 1.5–1.8%. The RBI’s Monetary Policy Committee will announce its interest rate decision tomorrow. Consensus expects a 25bps rate cut. The advance-decline ratio was skewed toward advancers. Out of 2,093 stocks traded on the NSE, 1,284 advanced, 499 declined, and the rest remained unchanged.
We have downgraded the U.S. market to a Downtrend after the S&P 500 and Nasdaq gapped down below their respective 50-DMA. The U.S. indices fell ~6% off highs in just six sessions.
Last week, the market was downgraded to a Downtrend. Today, Nifty closed in the green, which will be considered as day 1 of an attempted rally. Looking forward, we will shift the market to a Rally Attempt if Nifty stays above today’s low for two more sessions. From there on, we would prefer to see a follow-through day before shifting the market back to a Confirmed Uptrend.
Pidilite Industries: The Company reported Q1 FY20 results during market hours. It beat consensus on all fronts. PAT grew 22.7% y/y to Rs 292.9 crore. Revenue was up 10% at Rs 2,016.8 crore. EBITDA was up 16.2% y/y at Rs 443.6 crore. In last three days, the stock advanced more than 8% on above-average volume. Today, the stock was up 3% and broke out from a cup-with-handle base.
Titan Company: The Company reported Q1 FY20 results during market hours. PAT was below consensus, while revenue and margins were in line. Top-line grew 14.5% y/y, while PAT was up 6.2% y/y to Rs 370 crore. For Q1 FY20, finance cost increased to Rs 30 crore from Rs 9 crore in Q1 FY19. The stock was up 1%.
Larsen & Toubro: The Company has won a contract worth ~Rs 9,500 crore from Delhi International Airport Limited to double the capacity of the airport in the next three years. The stock ended 2.4% higher.