Nifty, +0.1%; Sensex, +0.2%; Nifty Midcap, -0.7%; Nifty Smallcap, -0.9%; Model Portfolio, -1%
Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
Nifty started the session on a positive note and moved above 16,300 in the opening hour. However, it quickly lost over 140 points to make an intraday low of 16,180. In the second half, Nifty reversed around 100 points and closed almost flat. The broader market continued to underperform the index. On the sectoral front, there was mixed action. Nifty Bank, Financial Service, and IT closed 0.3–0.7% higher. On the flip side, Nifty Metal (-1.8%) and Realty (-0.7%) closed lower. The advance-decline ratio favored the decliners. Of 1,998 stocks traded, 663 stocks advanced, 1,325 stocks declined, and the remaining closed flat.
Currently, the distribution day count stands at three. Nifty is trading near its all-time high. But the broader market action was not very constructive. We will continue to follow the action of leaders and look for constructive behavior and potential entry points to develop. If the index adds a couple of distribution days, stages a reversal, or breaches key moving averages, we may change the market status to an Uptrend Under Pressure. As there is weakness in the broader market, we recommend being selective while investing in new stock. Focus on quality ideas emerging from proper bases with the RS line trending higher. Reducing exposure to stocks breaking below their 21- or 50-DMA is important.