Daily Big Picture : Nifty Trades Higher, PSU Bank and Auto Stocks Lead; PVR Beats Q2 Consensus

Today’s Action

Nifty, +1.1%; Sensex, +1.2%; Nifty Midcap, +1.8%; Nifty Smallcap, +0.8%; and Model Portfolio, +0.8%.

Daily Market Review

Market Status: Confirmed Uptrend

Nifty, after opening flat, traded higher with impressive uptrend in the hourly chart and closed near day’s high with solid gains. Further, market breadth witnessed an improvement with advance-decline ratio tilting toward advancers. Of the 2,124 stocks traded on the NSE, 1,122 advanced, 653 declined, and the rest remained unchanged. Both midcap and smallcap posted solid gains of 1.8% and 0.8%, respectively.

On the macro front, Britain and the European Union reached an outline Brexit deal, which is likely to have a positive impact on global markets. On the sectoral front, Nifty IT failed to keep up with yesterday’s momentum and posted 0.4% loss. Rest all other indices closed in the green.

Looking ahead, we would like Nifty to hold its key moving averages with good participation from Midcap and Smallcap stocks. With Nifty in a Confirmed Uptrend, we recommend focusing on non-extended ideas trading above their respective moving averages with RS lines at or near new highs. On the flip side, if Nifty registers additional distribution days, it will be a subtle sign of weakness in the market.

Key News

T V S Motor reported Q2 results today. Total revenue in Q2 FY20 was Rs 4,352.7 crore as against the revenue of Rs 4,994.2 crores in Q2 FY19. While EBITDA increased to 8.8% in Q2 FY20 from 8.6%, PAT advanced around 21% y/y. The stock was up 6.8%.

Pvr reported Q2 results today during market hours. Adjusted EBITDA margin (without adoption of Ind AS 116) grew 230bps y/y and net profit (without adoption of Ind AS) advanced 86% y/y. The stock was up 1.1%.

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

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