Nifty at an intraday high of 8,576; as Lupin receives a nod from USFDA

Today’s Action

Nifty, -4.4%; Sensex, -4.6%; Nifty Midcap, -2.8%; Nifty Smallcap, -2.3%; Model Portfolio, 0%

Daily Market Review

Market Pulse: Rally Attempt

Nifty, after opening around 300 points lower, surged higher to make an intraday high of 8,576. However, as the day progressed, it continued to decline to end below 8,300. Today’s action has put an end to the last four session’s rally. 76% of Nifty 50 stocks have declined, with Bajaj Finance (-11.8%) and Housing Development Fin. (-11.1%) being the major decliners.

Barring Nifty Pharma (+1.4%) and FMCG (+0.7%), all the sectoral indices closed in the red. Nifty Realty (-7.8%) and Financial services (-7.4%) were the major decliners. The advance-decline ratio was in favor of decliners. Of 2,134 stocks traded, 702 advanced, 1,095 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

Adjaristsqali Georgia - a joint venture between Tata Power (-4.9%), Norway's Clean Energy Invest, and International Financial Corporation - is setting up a 187 MW of hydro project at a cost of around $500M.
Bank Of Baroda (-3.5%) has slashed its interest rate by 75bps on loans for retail, personal, and MSMEs to 7.25%.
Lupin (Nse) (+2.3%) received an establishment inspection report (EIR) from the USFDA, indicating successful closure of inspection.

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