Barring Nifty Pharma, All Other Sectors Close Higher; Aavas Financiers to Raise Rs 100 Crore via Issuance of Bonds

Nifty, +0.9%; Sensex, +0.8%; Nifty Midcap, +1.2%; Nifty Smallcap, +1.7%; Model Portfolio, +0.8%

Market Pulse Confirmed Uptrend

Distribution Day Count: Three

Nifty made a gap up opening of about 75 points and traded in the narrow range throughout the day. It made a fresh all-time high and closed 0.9% higher for the day. Volume was lower than the previous session. Further, one distribution day expired today, taking the count to three. The broader market outperformed compared with the general market. Midcap closed 1.2% higher, while smallcap advanced 1.7%.

On the sectoral front, barring Nifty Pharma (-0.3%), all the sectors closed in the green. Nifty PSU Bank (+2.8%) and Nifty Metal (+2.8%) advanced the most, followed by Nifty Realty and Bank, which advanced 2.4% and 1.7%, respectively. Market breadth was skewed toward advancers. Of 2,247 stocks traded, 1,357 advanced, 549 declined, and the remaining were unchanged.

Looking ahead, we would like the index to hold its 21-DMA and trade above it. It is advised to closely review the existing positions and book profits in stocks that are extended from their moving averages and showing technical weakness. Also, tracking distribution days is crucial. If the distribution day is elevated further, it can halt the uptrend.