Nifty Adds Distribution Day; Broader Market Outperforms
Nifty, -0.6%; Sensex, -0.7%; Nifty Midcap, +0.8%; Nifty Smallcap, +0.8%; Model Portfolio, -0.1%
Nifty gapped lower on weak global cues. However, it recovered around 80 points in the opening hour. After a little consolidation, it further moved higher and made a high of 14,900. From there, it reversed and closed around 14,850. As the volume was higher compared with yesterday’s session, we will consider it as a distribution day. The positive momentum remained intact in the broader market. Midcap and Smallcap indices outperformed benchmark indices. There was a mixed action on the sectoral front. Nifty PSU Bank (+1.2%), Realty (+0.3%), and Auto (+0.3%) closed higher, Nifty Private Banks, Financial Services, and Metals closed more than 1% lower. The advance-decline ratio was in favor of advancers. Of the 2,257 stocks traded, 1,162 advanced, 757 declined, and the rest remained unchanged. Looking forward, without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions. If the index falls further, adds a distribution day, and breaches its key moving averages, we may change the market status to an Uptrend Under Pressure. Continue to trim or avoid ideas lagging and/or breaking down below major moving averages.
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