Nifty, +0.15%; Sensex, +0.03%; Nifty Midcap, +0.6%; Nifty Smallcap, +0.7%; Model Portfolio, +0.5%
Market Pulse Confirmed Uptrend
Distribution Day Count: Two
Nifty opened at a record high this morning but surrendered gains as the day wore on. It was the second consecutive day when benchmark indices stalled and traded in a narrow range. However, midcap and smallcap indices continued to rally. On the sectoral front, Nifty IT, Financial services, and Private Banks were lagging. On the flip side, Nifty PSU Bank (+4.8%), Metal (+2.5%), and Auto (+1.7%) pushed the market higher. Market breadth was skewed toward advancers. Out of 2,220 stocks traded, 1,357 stocks advanced, 549 declined, and the remaining stocks unchanged.
With leadership broadening and indices above relevant intermediate term moving averages, we will continue to look for leadership-quality growth names to form entry points. After a strong rally, pullback/consolidation (if any) is a constructive sign if Nifty holds its 21-DMA. It is advised to closely review the existing positions and book partial profits in stocks that are extended from their moving averages. On the flip side, tracking distribution days is crucial. Accumulation of distribution days can halt the uptrend.