Today’s Action

Nifty, +3.9%; Sensex, +4.9%; Nifty Midcap, +3.4%; Nifty Smallcap, +3.2%; Model Portfolio, 0%

Daily Market Review

Market Pulse:Rally Attempt

Nifty extended its gains for the third consecutive trading session and advanced more than 13% after suffering its worst single day fall on Monday. Volume was on the higher side as against yesterday’s session. Breadth has improved slightly, with 39 of the 50 Nifty stocks closing in the green. Further, today’s action qualified as day three of an attempted rally. So, we are changing the market status to a Rally Attempt from a Downtrend. Tomorrow opens the window for a follow-through day on Nifty. If we advance 1.5% or more on volume that is higher than today, we will change the status to a Confirmed Uptrend. Ideally the follow-through day should occur between the fourth and the seventh day. The follow through days that occur after the 10th day are more likely to fail.

On the sectoral front, all the sectoral indices continued to close in the green. Nifty Pvt Bank (+8.3%) continued to gain and led the rally followed by Nifty Realty and Nifty Bank, which gained 7.3% and 6.4%, respectively. The advance-decline ratio was in favor of advancers. Of 2,120 stocks traded, 1,275 advanced, 503 declined, and the remaining traded flat.

We continue to suggest a cautious approach until the general market conditions improve. Most stocks continue to incur technical damage, with many moving deeper into their respective bases and breaking below logical levels of support. Without trying to predict and decode stories, we will take what the market gives us and continue to monitor unfolding conditions. We will continue to monitor quality ideas with rising relative strength lines and superior fundamentals that could be set up to buy when and if the market begins to stabilize.

Key News

Government announces a series of measures to tackle the economic distress caused by the corona pandemic and lockdown declared to deal with the situation.

Government raised collateral free loans for women self-help groups to Rs 20 lakh from Rs 10 lakh.
Ujjwala Scheme Beneficiaries to receive free cylinders for three months, which will help 8 crore families below poverty line.
MNREGA payout is increased to Rs 202/day from Rs 182/day.
Farmers will be given Rs 2,000 as first installment under PM Kisan Scheme in the first week of April

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.

Author's Bio: 

MarketSmith India is an investment advisory product based on William O’Neil’s CAN SLIM method with model portfolio, pattern recognition, idea lists powered by institutional quality data.Read at