Today’s Action
Nifty, -0.3%; Sensex, -0.2%; Nifty Midcap, -0.9%; Nifty Smallcap, -0.6%; and Model Portfolio, 0%.
Daily Market Review
Market Status: Rally Attempt
Nifty, after opening higher in today’s session, failed to hold on and gave up initial gains. The correction was mainly led by PSU Bank, Metal, and Consumer stocks. However, Nifty managed to close above 11,000.
On the sectoral front, all sectors barring Nifty Auto (+1.2%), Nifty IT (+1.2%), and Nifty Pharma (+0.1%) were in the red. The rally in Nifty IT was mainly led by Infosys (+1.9%), Hcl Technologies (+1.9%), and Tata Consultancy Svs. (+1.1%). Nifty PSU Bank (-2.4%) and Nifty Metal (-1.7%) were the top decliners. The advance-decline ratio was tilted toward decliners. Out of 2,113 stocks traded on the NSE, 645 advanced, 1,129 declined, and the rest remained unchanged. In the broader market, Nifty Midcap (-0.9%) and Smallcap (-0.6%) both closed in the red.
Looking ahead, we would prefer to see a follow-through day before shifting the market back to a Confirmed Uptrend. Along with that, we would also like to see Nifty reclaim its 200-DMA to confirm the constructive development of the market.
Upcoming events: Aug 23: FX Reserve (USD)
Key News
Maha.& Maha.Finl.Svs. announced a deal to form a joint venture with Sri Lanka’s Ideal Finance, in which it will have a 58.2% share. This move is part of the company’s global expansion strategy. The stock is down 1%.
Mahanagar Gas rallied 7.8% today after Royal Dutch Shell sold 10% equity through block deals. Shell sold its stake with the aim of optimizing its portfolio.
Vodafone Idea announced a change in top level management. The current CEO Balesh Sharma resigned with immediate effect, citing personal reasons. Ravinder Takkar has been appointed as the successor. The stock is down 2.5%.
What do you think? Please email us any questions or comments.
Continue reading with a MarketSmith India Premium subscription…
To Read Detailed Reports including Stock Recommendations, Idea Lists, Evaluate Stocks etc. Subscribe to MarketSmith India.