Nifty, -0.6%; Sensex, -0.5%; Nifty Midcap, -0.7%; Nifty Smallcap, +0.1%; Model Portfolio, -0.1%.
Market Pulse: Confirmed Uptrend
Distribution Day Count: Five
After closing just below 18,000 in yesterday’s session, Nifty gapped lower today. It attempted to move higher and crossed 18,000 during the day, but failed to hold gains and closed 0.56% lower. As the volume was higher compared to the previous session, we will mark today as a distribution day. On the sectoral front, the action was similar to that of yesterday. Nifty Auto closed 0.7% higher. Nifty IT managed to closed in the green. Nifty Bank, Financial Services, Pharma, and Realty closed 0.5–1.5% lower. Today, of the 2,054 stocks traded, 777 advanced, 1,213 declined, and the remaining closed flat.
Top Nifty50 Gainers and Losers (Source: NSE)
The distribution day count currently stands at five. If the market succumbs to selling pressure and breaches its 50-DMA, we may change the market status to an Uptrend Under Pressure. Nifty is trading less than 0.5% above its 50-DMA. Reducing exposure to stocks breaking below their 21- or 50-DMA on higher volume is important.
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