Weekly Big Picture : Nifty Closes Below 11,300; PSU Bank and Financial Services Among Top Losers

Market Pulse

Uptrend Under Pressure

Weekly Action

Nifty, -1.2%; Sensex, -1.2%; Nifty Midcap, -1.6%; Nifty Smallcap, -2.5%; and Model Portfolio, -1.6%. 

Weekly Market Review 

Nifty, after breaching its 100-DMA last Friday, continued its bearish trend through the week, barring a positive close on Friday. With this, Nifty extended its weekly loss for the third consecutive week. Distribution remains at four days on Nifty, with one day expiring at the close today.

From a sectoral perspective, Nifty Media (+5.6%) was the top gainer followed by Nifty Pharma (+1.7%) and FMCG (+0.4%). On the flipside, Nifty PSU Bank (-5.1%) was the top loser followed by Nifty Financial Services (-2.7%) and Energy (-2.0%). Today, the advance-decline ratio was in favor of gainers. Of the 1,906 stocks traded on the NSE, 993 advanced, 809 declined, and 104 remained unchanged.

Looking forward, for an upside reversal, we would like to see Nifty retake its 100-DMA (which has been a key support in the last few months) and healthy market breadth. On the downside, we may change the market status to a Downtrend if Nifty adds two distribution days and leading stocks breach key support levels.

Stocks in News

Bajaj Auto: The Company reported its Q1 FY20 results today, during market hours. Revenue grew ~4% y/y to Rs 7,756 crore, beating consensus of Rs 7,587 crore. Realization per unit increased 4.1% y/y. EBITDA fell 10.5% to Rs 1,198 crore but came in above consensus of Rs 1,186 crore. The EBITDA margin fell 249bps to 15.45%, in line with estimates. The stock was up 2.8%.

Maruti Suzuki India: The Company reported Q1 FY20 results today. Standalone profit fell 27.3% y/y to Rs 1,435 crore, dragged down by lower sales volume (-18% y/y) and higher depreciation. Revenue increased 12.2% to Rs 19,719.8 crore. Both revenue and net profit beat consensus estimates. The stock closed 0.9% higher.

What do you think? Please email us any questions or comments.

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