Daily Big Picture – IT Stocks Gain; Nifty up 0.4%, Midcaps down 0.9%

Today’s Action

Benchmark indices gain for the third straight trading session. Nifty, +0.4%, Sensex, +0.6%, Model Portfolio, -1.1%; MSI Ind 47, -0.9%.

Daily Market Review

India’s benchmark indices posted modest gains on Wednesday in a range-bound trading session. The Nifty broke its 200-DMA intraday but fell back to end 0.4% up from the previous session’s close.

Barring large caps, performance of the majority of stocks was largely weak. On sectoral front, most indices ended in the red except Nifty IT (+2.8%) and Nifty Media (+2.14%). Nifty PSU bank (-2.0%), Nifty Realty (-1.4%), and Nifty Metal (-1%) were among the top losers.

Nifty Midcap and Smallcap fell 0.9% and 0.8%, respectively.

The advance-decline ratio was in favor of decliners. Of the 2,064 stocks traded on the NSE, 593 gained, 1,131 declined, and 340 remained unchanged.

The market status remains unchanged at a Confirmed Uptrend. The distribution 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

Mphasis ended 5.6% up today after the company decided to buyback shares worth Rs 988.3 crores. The buyback window will open on December 7 and will close on December 20.

Glxsk.Csm.Hlthcr. rose to a peak of 4.2% intraday after the news that Nestle and Unilever are in final talks to buy its Horlicks brand. The stock however ended 1.3% up.

Jet Airways (India) ended 5.0% higher today after the news came out that the founder Mr. Naresh Goyal has met prospective buyers of the airlines and has agreed to relinquish his controlling stake in it.

Action in Leading Stocks

Leaders Up on Volume: Tube Investments Of India Ltd (+2.3%), Nestle India (+1.7%), and Iol Chemicals & Pharms. (+1.3%)

Leaders Down on Volume: Power Finance (-9.3%), Adani Transmissions Ltd (-4.7%), and Vinati Organics (-2.3%)

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