Daily Big Picture – Nifty, Sensex Gain on High Volume; Bank, Metal Stocks Rally

Today’s Action

Nifty gains for the fourth straight trading session. Sensex closes above 36,000 for the first time after two months. Nifty, +1.2%, Sensex, +1.3%, Model Portfolio, +0.7%; MSI Ind 47, +0.1%.

Daily Market Review

India’s benchmark indices posted gain on high volume. The Nifty closed above its 200-DMA following strength in global markets, after the US Fed Chairman said that the central bank’s benchmark interest rate is near neutral level.

On sectoral front, barring Nifty IT (-1.1%), all indices ended in the green. Nifty Metal (+2%), Nifty Pvt Bank (+2.0%), Nifty Bank (+1.8%), Financial Services (+1.8%) were the top gainers. Bajaj Auto (+5%), Kotak Mahindra Bank (+4.5%), and Hindalco Industries (+4%), led the gain among Nifty50 stocks.

Nifty Midcap and Smallcap gain 0.6% and 0.2%, respectively.

The advance and decline were almost equal, marginally in favor of advancers. Of the 2,063 stocks traded on the NSE, 863 gained, 858 declined, and 342 remained unchanged.

The market status remains unchanged at a Confirmed Uptrend. The distribution day count stands at two on the Nifty. 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.

Stocks in News

Jubilant Life Scis. rallied 6.6% after its Singapore based wholly-owned subsidiary company, Drug Discovery and Development Solutions, acquired stake in Inipharm Inc., US.

Spicejet gained 1.3% after it provides additional bank guarantee of INR 200M to the Airport Authority of India for unpaid dues.

Cadila Healthcare opened flat, but gained 3.8% after news on the Company receiving final approval from the USFDA to make generic Lansoprazole tablets used for treating conditions caused by stomach acid.

Leaders Up on Volume: Adani Enterprises (+7.5%), Vinati Organics (+3.4%), and Dr Reddys Laboratories (+3.2%)

Leaders Down on Volume: Adani Transmissions Ltd (-5%), Glenmark Pharmaceuticals (-1.8%), and Nestle India (-0.9%)

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