Today’s Action

Nifty, -13%; Sensex, -13.2%; Nifty Midcap, -13%; Nifty Smallcap, -12.9%; Model Portfolio, 0%

Daily Market Review

Market Pulse:  Downtrend

Nifty, after a gap down opening, hit 10% lower circuit leading to a trading halt for 45 min. After the trading resumed, the index continued to post unidirectional downward movement and closed near the day's low with significant losses. All Nifty stocks closed in the red. Axis Bank(-27.6%), Bajaj Finserv(-27.5%), and Indusind Bank (Nse)(-23.9%) were the top three decliners on Nifty. Today, Nifty breached its Friday’s low and made a new low of 7,583.6. So, today’s action led to a reset of follow-through day count for a rally attempt.

All the sectoral indices closed in the red. Barring Nifty IT and Nifty Pharma, all other indices posted a double-digit decline in the range of 10–17%. Advance-Decline ratio was highly skewed toward decliners. Of 2,124 stocks traded, 129 advanced, 1,703 declined, and the remaining traded flat.

We continue to suggest a cautious approach until the general market conditions improve. Most of the stocks continue to take on 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

Indraprastha Gas (-11.2%): The company closed nearly two-third of its CNG dispensing outlets in Delhi, Noida, and Ghaziabad amid falling demand due to lock down because of coronavirus spread.

SEBI made an extension regarding issuance of debt securities by 60 days i.e., till May 31 and filling of large corporate disclosure till June 30.

The Reserve Bank of India announced to conduct the variable rate repo auctions for Rs 1,00,000 crore in two tranches of Rs 50,000 crore each, on 23 and 24 March as a preemptive measure to deal with liquidity requirements on account of COVID-19.

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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