Daily Big Picture : Sensex Regains 40,000, Nifty Closes Marginally Below 11,850; Indigo Orders for 300 Airbus Jets

Today’s Action

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.

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