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Market Status Changed to a Confirmed Uptrend

Posted Date: April 28 2021
 We consider today’s move as a follow-through day and upgrade the market status to a Confirmed Uptrend. The logic behind it:
1) Nifty and Sensex gained 1.44% and 1.6%, respectively
2) Volume was higher than yesterday’s session
3) Nifty reclaimed the 50-DMA
4) Market breadth improving (Nifty Midcap50 closed 1.7% higher)
5) Leading stock in momentum and off lows.
- Leading stocks across the sectors are progressing well and have reclaimed key moving averages or are off lows over the last two to three sessions. Also, market breadth has improved on comparatively higher volume.
- Without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions. Stocks that are breaking out of consolidation, have higher relative strength, and superior fundamentals can do well.
- We will start calculating the distribution day count and look for weaknesses in the market if any. We may downgrade the status to an Uptrend Under Pressure if the distribution day count increases and Nifty breaches the key support level.

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