Nifty, +0.5%; Sensex, +0.6%; Nifty Midcap, +0.6%; Nifty Smallcap, +0.4%; Model Portfolio, +0.4%.
Daily Market Review.
Market Status: Confirmed Uptrend
Benchmark indices continued their uptrend paced by gains in Itc (+2.4%), Bharti Airtel (+2.2%), and Infosys (+1.5%). While Sensex ended above 40,000, Nifty marginally closed below 11,850 and is expected to test its previous high at 12,103 in the coming sessions. On the sectoral front, Nifty PSU Bank (+3.7%) was the top gainer led by gains in State Bank Of India (+3.3%). Among others, Nifty IT (+1.4%) and FMCG (+1.0%) followed the race. On the flipside, Nifty Media (-0.6%), Realty (-0.5%), and Auto (-0.2%) were the top decliners.
In the broader market, Nifty Midcap (+0.6%) outperformed Nifty while Smallcap closed with a gain of 0.4%. Back in the U.S., the Federal Reserve is expected to cut its interest rate for the third time in a row due today to help sustain economic expansion.
The market breadth was in favor of gainers. Of the 2,144 stocks traded on the NSE, 1,017 advanced, 768 declined, and the rest remained unchanged.
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.
United Bank Of India reported Q2 results today. Interest earned was up 15% y/y to Rs 2,440 crore, Net profit stood at Rs 124 crore. Asset quality improved driven by improvement in GNPA and NNPA ratios to 15.51% and 7.88%, respectively. The stock was up 19.5%.
Interglobe Aviation has placed an order for 300 A320neo Family aircraft. This order includes a mix of A320neo, A321neo, and A321XLR aircraft. With this, the company’s total number of A320neo Family aircraft orders has reached 730. The stock was up 7.3%.