Godrej Consumer’s Q3 Bottom Line Beats Consensus; IT, Metal, and Auto Stocks Outperform

Nifty, +1.3%; Sensex, +1.2%; Nifty Midcap, +1.5%; Nifty Smallcap, +1.5%; Model Portfolio, +1.3%

Market Pulse Confirmed Uptrend

Distribution Day Count: Six

Nifty opened 135 points higher and maintained the gaining momentum to trade toward the day's high of 15,160. Though it witnessed minor profit booking in the last hour, the index closed the day holding solid gains. Also, it continues to make a fresh high. Volume was lower compared with Friday’s session. Broader indices continued their outperformance. Both Midcap and Smallcap indices closed 1.5% higher.

On the sectoral front, barring Nifty FMCG (-0.4%) and PSU Bank (-1%), all other indices closed in the green. Nifty Auto and Nifty Metal were the major outperformers with gains of 3.2% and 3.1%, respectively. Similarly, Nifty Realty and IT were up 2.0% and 2.3% for the day. Advance-decline ratio was skewed toward advancers. Out of 2,222 stocks, 1,164 advanced and 746 declined.

On last Wednesday, Nifty made a new high and moved above the previous rally high of 14,754. Hence, we changed the market status to a Confirmed Uptrend. However, the distribution day count remains elevated at six. Nifty is more than 4.6% above its 21-DMA. If the 21-DMA is breached, we may downgrade the status to an Uptrend Under Pressure. Without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions.