Daily Big Picture:Nifty Closed Flat After Roller-Coaster Ride. Learn how to invest in stock market in a Downtrend Market.

Daily Market Review

Market Pulse: Downtrend

Nifty attempted a brief relief rally but failed to hold gains. After opening higher, markets were volatile through the day, and closed flat. As Nifty closed briefly in the green and in the upper half of the day’s range, today’s action will be considered as a day one of an attempted rally. Hereon, we will look for today’s low (10,338) to hold for another two days before changing the market status to a Rally Attempt. If that happens, we will be looking for a follow-through day.

On sectoral front, Nifty Metal (-2%), PSU Bank (-3.9%), and Realty (-2.7%) led the way down. Nifty Media gained 1.7%, while Nifty FMCG and Financials were up 0.2% each. Of 2,175 stocks traded, 774 advanced, 1,036 declined, and the remaining traded flat. Nifty Midcap was down 0.9%, while the Smallcap index closed marginally in the red.

The Bank of England cut rates by 50bps to 0.25%. The bank took this major cut to soften the economic impact from coronavirus. The European Central Bank will meet tomorrow. Consensus expects 10bps rate cut.

We continue to remain in a Downtrend and suggest a cautious approach until the general market conditions improve. Without trying to predict and decode stories, we will take what the market gives us and continue to monitor unfolding conditions. In our portfolio, we continue to hold high relative strength quality ideas trading above logical support and consolidating in a downtrend market. We may book profit or cut losses if any of our portfolio stocks show technical weakness.

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Disclaimer: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.

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