Today’s Action
Nifty, +0.2%; Sensex, +0.2%; Model Portfolio, -0.1%; Nifty Midcap, -0.2%; Smallcap, -0.3%.
Daily Market Review
Market Status: Confirmed Uptrend
Nifty managed to close above its 50-DMA after an intraday rebound from its low of 11,641. Though Nifty Midcap and Smallcap were also off-lows, but closed 0.2% and 0.3% lower, respectively. In June, Nifty Midcap and Smallcap are down 5% and 7.5%, respectively, and stocks trading above their respective 50- and-200 DMA in both the indices have come down to ~25% from ~40% at the start of June. This indicates the deterioration of market breadth.
On the sectoral front, Nifty IT (0.6%) and Media (0.5%) were top gainers. While Nifty Pharma (-0.7%) and Auto (-0.5%) were among top losers. The advance-decline ratio was skewed toward decliners. Of the 2,096 stocks traded on the NSE, 688 advanced, 1,092 declined, and 316 remained unchanged.
Looking forward, Nifty holding the 50-DMA becomes crucial. Though the market is in a Confirmed Uptrend, it has not fared well. We will be looking for a follow-through day to enhance our confidence on the market. On the flip side, the status will be downgraded to an Uptrend Under Pressure, if Nifty fails to hold the 50-DMA and the distribution day count increases.
Key News
Jet Airways (India): According to the media report, SBI approached NCLT (National Company Law Tribunal) and filed an insolvency petition against the Company. The stock was down 40%.
Star Cement: The Company will consider share buyback in its board meeting on June 21. It has a market cap of ~Rs 5,000 crore and the net cash on books is ~Rs 400 crore. The stock was up 10% intraday, but closed just 1% higher.
Leaders Up on Volume: Srf (+5.1%), Astrazeneca Pharma India (+2.9%), and Bandhan Bank (+2.5%)
Leaders Down on Volume: Bata India (-2.5%), Axis Bank (-0.3%), and Wipro (-0.3%)
What do you think? Please email us any questions or comments.
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