Market News: Zydus Cadila Receives Tentative Approval | Nifty Adds a Distribution Day

Today’s Action Nifty, -0.8%; Sensex, -1%; Nifty Midcap, +1.3%; Nifty Smallcap, +1.3%; Model Portfolio, -0.2% Market Pulse Confirmed Uptrend Nifty, after a gap up opening, traded in a narrow range in the first half of the trading session. However, the index shed all its gains in the last hour of the day and closed in negative territory. Further, Nifty added a distribution day as today’s volume was higher than the previous session. On the sectoral front, results were mixed. Nifty Financial Service and Nifty Bank were the major decliners, which lost more than 2% each. On the flip side, Nifty FMCG (+4.1%) gained the most followed by Nifty Realty (+1.8%). The advance-decline ratio was in favor of advancers. Of 2,111 stocks traded, 1,208 advanced, 588 declined, and the remaining traded flat. We continue to be very selective about taking any fresh positions. It is important that investors don’t play all their cards at once. We would suggest adopting an investment approach where you begin with a small allocation and increase it as and when the market advances further. Without trying to predict and decode stories, we will take what the market gives us and continue to monitor unfolding conditions. Stocks with higher relative strength and superior fundamentals can do well. Some leading stocks have sharply corrected. Wait for them to put in at least a short period of consolidation and show a constructive breakout from that range. Buying without this period of constructive behavior into a straight upmove off the bottom, puts you at a risk of drawdown. Key News Lupin (Nse)(-1.9%) received the Establishment Inspection Report after closure of the U.S. FDA inspection of the company’s Mandideep Unit II facility, classifying the inspection as Voluntary Action Indicated. Cadila Healthcare(-4.1%) received tentative approval from the U.S. FDA for Macitentan tablets. rnTo 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.