Today’s Action:
Benchmark indices ended on a positive note. Nifty, 0.8%, Sensex, 0.9%, Model Portfolio, +1.6%; MSI Ind 47, +0.1%.
Daily Market Review:
Benchmark indices opened with a small gap up today but rose gradually with strength toward the end of session to deliver good positive gains.
Nifty FMCG was the best performer supported by Dabur India and ITC. Nifty Metal got support from gains in Jindal Steel & Power and National Aluminium. Tata Motors and Ashok Leyland led gains in Nifty Auto today. The Nifty Midcap and Smallcap each rose 0.5%.
The market remains unchanged at a Confirmed Uptrend. Today, the Nifty broke out from its 50- as well as 200-DMA on above average volume, signaling good health of rally. We would suggest investors to track fundamentally strong stocks trading above their 50- and 200-DMA and take positions on strong breakouts. Investors should begin with a smaller allocation and increase it gradually as market displays positive signals like additional follow-through days.
The advance-decline ratio was in favor of gainers. Of the 2,074 stocks traded on the NSE, 922 gained, 807 declined, and 345 remained unchanged.
Stocks in News:
Jet Airways (India) fell 6.9% today after TATA sons clarified that talks to buy the cash strapped airline carrier are in the early stage and no proposal has been prepared till now.
Dr Reddys Laboratories rose 2.1% today after the Company reported in its exchange filing that no observations were received from audit of its Andhra Pradesh formulation plant. The audit was completed by the U.S. drug regulator.
Reliance Industries was up 2.0% after a report indicated that the Company is considering the plan to increase its oil refining capacity by roughly 50%.
Action in Leading Stocks:
Leaders Up on Volume: N R B Bearings (+4.8%), Vip Industries (+4.3%), and Srf (+2.6%)
Leaders Down on Volume: National Peroxide (-2.8%), Fine Organic Inds (-2.1%), and Nestle India (-3.2%)
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