MarketsmithIndia Articles

Broader Market Stages Reversal; Infosys Signs New Contract with UCAS


Posted Date: August 24 2021 | Reading Time: 2 minutes
Today’s Action

Nifty, +0.8%; Sensex, +0.7%; Nifty Midcap, +1.4%; Nifty Smallcap, +2%; Model Portfolio, +2.1%

Market Pulse: Confirmed Uptrend

Distribution Day Count: Four

Nifty opened about 65 points higher and traded with volatility in the first hour. However, for the rest of the session, there was steady buying interest and the index closed near the day’s high, holding on to decent gains. Volume was almost the same as in the previous session. Broader markets staged a smart recovery and outperformed the major indices.  Midcap was up 1.4%, while Smallcap advanced 2%.

On the sectoral front, Nifty Metal (+2.9%) posted a smart recovery and remained the top sectoral gainer. Similarly, Nifty PSU bank, Nifty Realty, and Nifty Bank were up 1.7–1.8%. On the flip side, Nifty FMCG and Nifty IT declined 0.7% and 0.2%, respectively. The advance-decline ratio turned to favor advancers. Of 2,004 stocks traded, 1,181 stocks advanced, 317 stocks declined, and the remaining closed flat.

The distribution day count currently stands at four. Nifty is trading near its all-time high. If the index adds a couple of distribution days, stages a reversal, or breaches its key moving averages, we may change the market status to an Uptrend Under Pressure. Reducing exposure to stocks breaking below their 21- or 50-DMA on higher volume is important. Further, in the broader market, we recommend being selective when investing in new stock.

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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.For more information, see our Legal disclosures here.

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