Market Status Changed to Uptrend Under Pressure

Posted Date: January 27 2021
- We are downgrading the market status to an Uptrend Under Pressure. Nifty continues to remain under selling pressure for four consecutive sessions with a breach of 21-DMA on Monday. Also, the distribution day count stood at five, and market leaders are showing signs of deterioration in their price actions.

- We will change the status to a Downtrend, if more distribution days are added or if Nifty breaches the 50-DMA (13,707) and/or the 200-DMA (11,511). On the flip side, the status will be back to a Confirmed Uptrend if Nifty retakes 14,754 level (high during the recent rally).

- As the market condition has changed to an Uptrend Under Pressure, investors should proceed ahead with caution. Unless a stock shows exceptional fundamental and technical strength, no new addition to the portfolio is advised.

- Investors should consider booking profits in the stocks that have performed well and have advanced 20–25% from their ideal buy points. Even if the market undergoes a small correction, these stocks are more likely to consolidate. Further, stocks slipping below their 50- and 200-DMA on above-average volume should be sold. Consider exiting stocks that have declined 8% from your buy price.


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