Updated: August 26, 2020
By MarketSmith India Research Team
Today’s Action
Nifty, +0.7%; Sensex, +0.6%; Nifty Midcap, +0.5%; Nifty Smallcap, +1.1%; Model Portfolio, -0.8%
Market Pulse Confirmed Uptrend
Nifty, after opening above 11,500, remained volatile and traded mostly sideways in the first half of the trading session. However, in the second half, it showed directional moves and closed the day near 11,550, holding meaningful gains. Volume was on the higher side compared with the previous session. Broader markets continued to maintain the positive momentum. Nifty Midcap and Smallcap closed with gains of 0.5% and 1.1%, respectively.
On the sectoral front, it was a mixed action. On the positive side, Nifty Media advanced the most with a gain of 2.5%. Further, Financial stocks continued to remain bullish for three consecutive sessions with Nifty Pvt Bank and Nifty Bank closing more than 1.4% higher. On the flip side, Nifty FMCG and Nifty Pharma were down 0.2% and 0.1%, respectively. Market breadth was skewed toward advancers. Of 2,187 stocks traded, 1,076 advanced, 752 declined, and the remaining traded flat.
The Indian market remains in a Confirmed Uptrend. We would like to see fresh names flexing their muscles for a sustainable rally. Finding favorable entries into powerful breakouts may be the best use for new money in the current market. However, things can change quickly due to high volatility. We are operating in an uncertain environment where information is distributed unevenly, wherein outside forces, either intentionally or unintentionally, affect prices across various time frames. We will continue to monitor the behavior of the market and keep an open mind as to how it unfolds.
Key News
N C L Industries announced its Q1 FY21 results. Revenue from operations declined 8.9% y/y and EBITDA was down 1% y/y to Rs 64.4 crore. Net profit was up 10% y/y to Rs 32 crore. The stock was up 8.2%.
Lupin (Nse) and Mylan N.V. announced the launch of Nepexto, biosimilar etanercept, in the German market. The stock was up 0.7%.