MarketsmithIndia Articles

Market Status Changed to Uptrend Under Pressure; RIL and Financial Stocks Underperforms

Author: Rushit Sejpal

Posted Date: November 22 2021 | Reading Time: 2 Minutes
Daily Action

Nifty, -2%; Sensex, -2%; Nifty Midcap, -3%; Nifty Smallcap, -2.7%; Model Portfolio, -2.6%.

Market PulseUptrend Under Pressure

Distribution Day Count: Six

Nifty opened 20 points higher but failed to hold gains and slumped more than than 500 points from there. Last week, Nifty breached its 21- and 50-DMA. Today’s action was marked as the sixth distribution day, and market status was downgraded to an Uptrend Under Pressure. Selling pressure was across the market. Nifty Midcap and Smallcap also breached their 50-DMA. Though markets recovered in the last hour, it was a tough day for market participants.

Source: Google Image

We will change the status to a Downtrend if more distribution days are added or if Nifty fails to reclaim the 50-DMA and market leaders show signs of deterioration in their price actions. On the flip side, the status will be changed back to a Confirmed Uptrend if Nifty retakes the 18,604 level (high during the recent rally). As the market condition has changed to an Uptrend Under Pressure, investors should proceed with caution. 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.


Reliance Industries fell more than 4% after it decided to halt a stake sale in its oil-to-chemicals business (O2C) to Saudi Arabia's Aramco.

Bharti Airtel gained more than 4% as it decided to increase tariff by around 20% from November 26. The company also said that the mobile Average Revenue per Unit (ARPU) needs to be at Rs 200 and ultimately at Rs 300. So, the tariff can increase in the future also.

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