Daily Big Picture : Nifty Reverses from Session Low; Government Initiates Disinvestment of BEML’s Shareholdings in VIL

Today’s Action

Nifty, +0.4%; Sensex, +0.4%; Nifty Midcap, +0.5%; Nifty Smallcap, +0.2%; and Model Portfolio, -0.3%.

Daily Market Review

Market Status: Rally Attempt 

Nifty, after opening flat, registered the day’s low of 10,746 amid volatility in the initial hour. However, it showed signs of recovery to extend its gains towards the day’s high of 10,859, managing to close 14 points below it. Nifty Midcap (+0.5%) and Smallcap (+0.2%) were in line with the market. India VIX was down 4.6%. INR fell to 72.06 against the dollar.

On the sectoral front, Nifty Metal (+1.6%), Nifty Bank (+1.1%), and Nifty Fin Service (+1%) were the top performers.  Nifty Auto (-1.7%), Nifty Media (-0.6%), and Nifty Realty (-0.2%) were the top decliners. The advance-decline ratio was skewed towards advancers. Out of 2,118 stocks traded on the NSE, 914 advanced, 845 declined, and the rest remained unchanged.

Looking forward, we would like Nifty to hold above its correction low of 10,637. If it fails to hold, the status will be downgraded to a Downtrend. On the flip side, we would look for a follow-through day before shifting the market back to a Confirmed Uptrend.

Key News

Beml shares gained 3.9% as the Government of India invited Expression of Interest (EoI)/Preliminary Information Memorandum (PIM) regarding the disinvestment of 96.56% of the company’s shareholding in Vignyan Industries (a BEML subsidiary).

Central Bank Of India announced repo-linked interest rate on home loans and vehicle loans, effective from September 1. Existing borrowers can also avail the benefit at a fee as decided by the bank. The stock was up 0.5%.

Bank Of Baroda‘s compensation committee approved the issue of up to Rs. 15 crore new equity shares to all eligible employees of the bank under BOB-ESPS 2019. The stock gained 2%.

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

Continue reading with a MarketSmith India Premium subscription…

To Read Detailed Reports including Stock Recommendations, Idea Lists, Evaluate Stocks etc. Subscribe to MarketSmith India.

Leave a Reply

Your email address will not be published. Required fields are marked *