Nifty Adds Distribution Day; HCL Tech Announces Contract with Hitachi ABB Power Grids

Posted Date: May 04 2021
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Today’s Action
 
Nifty, -0.9%; Sensex, -1%; Nifty Midcap, -0.4%; Nifty Smallcap, -0.9%; Model Portfolio, -1.5%
 
Market Pulse: Confirmed Uptrend
 
Distribution Day Count: Two
 
Nifty gapped higher this morning, but failed to hold gains. After falling 150 points in the opening hour, it attempted to move higher. However, in the second half, it fell sharply, closing below 14,500. As the volume was higher than yesterday’s session, we will consider today’s action as a distribution day. The broader market was in good momentum in the first half. It also fell sharply along with the benchmark indices. The advance-decline ratio was in favor of decliners. Of the 2,247 stocks traded, 808 advanced, 1,078 declined, and the rest remained unchanged.
 
On the sectoral front, barring Nifty PSU Bank (+3.4%), all others closed in the red. Nifty Pharma (-2%) was the top loser. Nifty Bank, Auto, Finial Service, FMCG, and IT closed 0.5–1% lower.
 
Looking ahead, without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions. If Nifty falls further and adds a couple of more distribution days, we may change the market status to an Uptrend Under Pressure. On the flip side, if Nifty reclaims its 21-DMA and moves higher, stocks that are breaking out of consolidation have higher relative strength and with superior fundamentals can do well. Continue to trim or avoid ideas lagging and/or breaking down below major moving averages.

What do you think? Please email us any questions or comments.

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