Daily Big Picture:Nifty takes another hit as PSU Bank and Metal stocks dip 40%

Today’s Action

Nifty, -7.6%; Sensex, -7.9%; Nifty Midcap, -6.3%; Nifty Smallcap, -6.4%; Model Portfolio, 0%

Daily Market Review

Market Pulse Downtrend

Nifty opened lower as the coronavirus spread intensified during the weekend. It made an intraday low of 9,165 and closed in the bottom quartile of the day’s range. The volatility index continues to rise further and is at record levels since 2008.

Brent crude fell around $2.07 to $31.78 a barrel, after last week’s plunge of 25%, which was the largest weekly fall since 2008.

On the sectoral front, the pain was felt all over, with all indices losing 4–9%. Advance-Decline ratio was highly skewed toward decliners. Of 2,151 stocks traded, 330 advanced, 1,542 declined, and the remaining traded flat.

We continue to remain in a Downtrend and suggest a cautious approach until the general market conditions improve. Most of the stocks continue to take on technical damage with many moving deeper into their respective bases and breaking below logical levels of support. Without trying to predict and decode stories, we will take what the market gives us and continue to monitor unfolding conditions. We will continue to monitor quality ideas with rising relative strength lines and superior fundamentals that could be set up to buy when and if the market begins to stabilize.

Key News

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