Daily Big Picture – PSU Bank Under Pressure Ahead of Monetary Policy; IT Stocks Gain

Today’s Action:

The Nifty breaks the six day winning streak. Nifty, -0.1%, Sensex, -0.3%, Model Portfolio, +0.1%; MSI Ind 47, -0.3%.

Daily Market Review:

The Nifty and the Sensex put up a muted show. Volumes were low today. Crude oil gains more than 2% ahead of OPEC meeting.  

On the sectoral front, Nifty IT (+1.7%) was moved to a Confirmed Uptrend as it registered a follow through day. Nifty PSU Bank (-1.3%) declined the most. All other sector indices registered a gain or loss of less than 1%. Bharat Petroleum (+3%), Indiabulls Housing Fin (+2.6%), and Oil & Natural Gas (+2.6%), were the leaders among Nifty50 stocks.

The Nifty Midcap is down 0.2% and the small cap gained 0.1%

The advance-decline ratio was in favor of decliners. Of the 2,064 stocks traded on the NSE, 766 advanced, 949 declined, and 349 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:

Hcl Technologies gained 1.8% after it signed a preferred service agreement with Broadcom Inc. The CEO of HCL announced a new Center of Excellence with a dedicated focus on Broadcom.

Alembic Pharmaceuticals  announced today that its wholly owned subsidiary Orit Laboratories LLC received approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) Glycopyrrolate Tablets USP, 1 mg and 2 mg. The stock closed flat today.

Leaders Up on Volume: Jubilant Life Scis. (+2.6%), Hnywell.Automation Ida. (+2.6%), and Tata Consultancy Svs. (+1.4%)

Leaders Down on Volume: Colgate-Palmolive India (-3.1%), Pvr (-2.3%), and Housing Development Fin. (-2.1%)