Nifty, -0.5%; Sensex, -0.5%; Nifty Midcap, -1.5%; Nifty Smallcap, -2%; Model Portfolio, -2.2%
Daily Market Review
Market Pulse : Downtrend
After opening higher, Nifty failed to hold gains and rolled over to losses of more than 1.5%. It also breached low of day one of an attempted rally. However, Nifty staged an upside reversal in the last hour and closed only 45bps lower. As the day one low was breached intraday, the count for an attempted rally resets.
We considered today’s session as a pink rally day as Nifty closed in upper half of the day’s range. So, today will be marked as a day one of an attempted rally. Hereon, we will look for today’s low (11,083) 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.
Reiterating our yesterday’s comment that it is important to understand that the market selloff has been so sharp and deep that there is a reasonable possibility that we have a sharp bounce. One should not get deceived by these moves. Instead, wait for the market to show some strength. Sharp, V-shaped recoveries are generally not constructive because most stocks can be hampered by overhead supply issues and that can cause a repulse.
On sectoral front, Nifty Bank and Media led the way down. Nifty Auto, Realty, Metal, and FMCG booked losses of 0.5–1% each. Nifty Pharma and IT were the only two sectors closing in the green. Of 2,144 stocks traded, 523 advanced, 1,303 declined, and the remaining traded flat.
We continue to remain in a Downtrend and suggest a cautious approach until general market conditions improve.
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