Nifty, -0.5%; Sensex, -0.5%; Model Portfolio, -0.2%; Nifty Midcap, -1.0%; Smallcap, -0.7%
Daily Market Review
Market Status: Uptrend Under Pressure
Nifty fell for the fourth consecutive day and closed below 100-DMA amid a huge sell-off in power, metal, and auto stocks. Nifty fell below 11,500 with Bajaj Finance (-4.8%), Tata Steel(-2.9%), and Tata Motors (-2.7%) being the top losers. In a piece of major news, the U.S. president once again threatened India over tariffs imposed on U.S. products, which spooked investor sentiment.
On the sectoral front, all the sectors closed in the red with Nifty Realty (-1.6%) declining the most, followed by Nifty Metal (-1.1%) and Auto (-1.1%). The advance-decline ratio leaned toward decliners. Of the total 2,084 stocks traded on the NSE, 607 advanced, 1,138 declined, and the rest ended flat.
On July 8, we changed the market status to an Uptrend Under Pressure from a Confirmed Uptrend, driven by factors such as Nifty breaching its 50-DMA, accumulation of distribution days, and stalling days. From here, if 2-3 more distribution days are added, we will change the status to a Downtrend. The status will be back to a Confirmed Uptrend if Nifty retakes 12,104 (high during the recent rally). We would like to see Nifty holding its 100-DMA (11,500 level), which gave good support when market corrected in May. On further downside, Nifty can find support near its 200-DMA, which is ~4% below the current level.
Interglobe Aviation: The stock fell 10.7% today as its promoters are involved in a spat and made allegations against each other, forcing the regulator SEBI to intervene.
Tata Motors: The stock fell 2.7% today after the Company reported its Q1 FY20 sales for the Jaguar Land Rover (JLR). Its total JLR sales fell 11.6% to 128,615 units. Retail sales fell 9.6% to 47,060 units.