Daily Big Picture : Nifty at Six-Month Low, Moved to Downtrend; Advance-Decline Ratio at 0.25

Today’s Action

Nifty, -1.7%; Sensex, -1.6%; Nifty Midcap, -1.9%; Nifty Smallcap, -2.8%; and Model Portfolio, 0%.

Daily Market Review

Market Status: Downtrend

Nifty opened below yesterday’s close and remained bearish throughout the day. It closed near day’s low with a significant decline of about 180 points amid heavy selling pressure. With Nifty breaching its previous correction low of 10,783, we moved the market to a Downtrend from a Rally Attempt.

On the sectoral front, barring Nifty IT (+0.2%), all sectors ended in the red. Nifty Realty (-6.7%), Nifty PSU (-3.6%), and Nifty Metal (-3.6%) were the top decliners. Out of 2,103 stocks traded on the NSE, 368 advanced, 1,433 declined, and the rest remained unchanged. In the broader market, Nifty Midcap (-1.9%) and Smallcap (-2.8%) both closed in the red. India VIX advanced 4.8%.

We advise investors to trim their positions and reduce market exposure. In addition, investors should closely watch out for price-volume action in the market and immediately take action to sell signals. Looking forward, we will shift the market back to Rally Attempt if Nifty sets up a bottom and stays above it for three consecutive sessions. Afterward, we would like to see a follow-through day before shifting the market back to a Confirmed Uptrend.

Upcoming events: Aug 23: FX Reserve (USD)

Key News

Lupin got board’s approval for selling its entire stake in Kyowa Criticare Co. Ltd to Neo ALA Co. Ltd. The company has taken this step to streamline Japan operations and zero in its focus on developing a hybrid (brand/generics) pharma model in Japan. The stock was up 0.1%.

Dlf was down 16.7% on the account of Supreme Court’s notice to the company for hiding material information about legal proceedings against its largest asset in Haryana.

Biocon’s Malaysia unit got clearance from European Medical Agency (EMA) to sell insulin products in EU countries. The stock was down 0.7%.

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

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