Stock Market Update: Alembic Pharma Surges After Good Q4 Results

Today’s Action

Nifty, +1.4%; Sensex, +1.5%; Nifty Midcap, +1.3%; Nifty Smallcap, +1.7%; Model Portfolio, -1.4%

Market Pulse: Confirmed Uptrend

Today’s session was highly volatile due to the expiry of weekly options contracts. 54% of Nifty50 stocks advanced today, led by Kotak Mahindra Bank(Nse) (+8.3%) and Tata Consultancy Svs. (+5.5%). Kotak Mahindra Bank(Nse) surged as the board approved fundraising plan yesterday. On the flip side, Titan Industries (Nse) (-5.6%) and Hindustan Unilever (-2.6%) were the major decliners.

Barring Nifty FMCG (-1.4%) and PSU Bank (-0.4%), all the sectoral indices closed higher. Nifty IT (+4.4%) and Pvt Bank (+3.2%) were the major advancers. Of 2,112 stocks traded, 1,151 advanced, 638 declined, and the remaining traded flat.

We continue to be very selective about taking any fresh positions. It is important that investors don’t play all their cards at once. We would suggest adopting an investment approach where you begin with a small allocation and increase it as and when the market advances further.

Without trying to predict and decode stories, we will take what the market gives us and continue to monitor unfolding conditions. Stocks with higher relative strength and superior fundamentals can do well. Some leading stocks have sharply corrected. Wait for them to put in at least a short period of consolidation and show a constructive breakout from that range. Buying without this period of constructive behavior into a straight upmove off the bottom, puts you at a risk of drawdown.

Key News

Parag Milk Foods: The company repaid Rs 54 crore to Kotak Mahindra Bank and released its pledged shares with the bank. Remaining Rs 10 crore debt will be repaid on time according to the company. The stock locked in upper circuit of 10%.

Alembic Pharmaceuticals The company reported its March quarter results. Revenue increased 30% y/y to Rs 1,206 crore. PAT surged 65% to Rs 204 crore. The stock advanced 9.6%.

Vodafone Idea: Shares climbed over 10% as the company received accelerated payments under ‘contingent liability mechanism’ from Vodafone Group which was due in September.

Continue reading with a MarketSmith India Premium subscription…

To Read Detailed Reports including Stock Recommendations, Idea Lists, Evaluate Stocks etc. Subscribe to MarketSmith India

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.

Share Market Tips: Not Every Stock Market Follow-through Works

#MarketsmithIndia
MarketsmithIndia

In the stock market, nothing works 100% of the time. That’s why you have to be prepared to deal with failed signals. In CAN SLIM, the market itself – the M in CAN SLIM – is the most important factor for making money. Your chances of grabbing profits in growth stocks increase when the market is acting right.

According to the O’Neil methodology, every major stock market bottom featured a follow-through day. It essentially confirms that a fledgling uptrend in stocks is underway.

Continue reading “Share Market Tips: Not Every Stock Market Follow-through Works”

Weekly Big Picture : Metal and Auto Stocks Most Affected.

Weekly Action

Nifty, -0.9%; Sensex, -0.3%; Nifty Midcap, -6.9%; Nifty Smallcap, -7.9%; Model Portfolio, 0%.

Market Pulse : Rally Attempt

Weekly Market Review

Nifty, after a gap-up opening, gave up its gains to close flat for the day. The index advanced for the fourth consecutive day. However, due to massive fall on Monday (-12.9%), Nifty declined around 1% for the week.

Barring Nifty IT (+2.1%), all the sectoral indices closed in negative territory for the week. Nifty Metal (-8.3%) and Auto (-8.1%) declined the most.

Continue reading “Weekly Big Picture : Metal and Auto Stocks Most Affected.”

Daily Big Picture:A 3-year low; will Nifty survive this?

Today’s Action

Nifty, -5.6%; Sensex, -5.6%; Nifty Midcap, -5.5%; Nifty Smallcap, -6.3%; Model Portfolio, 0%

Daily Market Review

Market Pulse: Downtrend

Nifty opened higher but selling pressure quickly grappled the markets. The index breached the low made on Friday, and is at a new three-year low. Around 90% of Nifty50 stocks ended in the red. Coronavirus cases in India increased to 147, with 10 fresh additions today.

Zee Entertainment Ents. (+23.3%) helped the Nifty Media (+0.4) to be the only index to close positive. Nifty Pvt Bank (-6.9%) and Financial Services (-6.7%) were the major decliners. Advance-Decline ratio was highly skewed toward decliners. Of 2,125 stocks traded, 273 advanced, 1,569 declined, and the remaining traded flat.

Continue reading “Daily Big Picture:A 3-year low; will Nifty survive this?”

Daily Big Picture:Yes Bank Surges 60%; Here’s market prediction today

Today’s Action

Nifty, -2.5%; Sensex, -2.6%; Nifty Midcap, -2.5%; Nifty Smallcap, -3.0%; Model Portfolio, 0%

Daily Market Review

Market Pulse: Rally Attempt

Nifty opened higher and made an intraday high of 9,403. However, in the second half, the index succumbed to selling pressure, breaching 9,000 level. The volatility index continues to rise further and is at record levels since 2008.

Brent crude fell around $2.89 to $30.9 a barrel, after last week’s plunge of 25%, which was the largest weekly fall since 2008. The US West Texas Intermediate (WTI) was trading below $30 per barrel.

Continue reading “Daily Big Picture:Yes Bank Surges 60%; Here’s market prediction today”