Nifty Advances Higher for 10th Consecutive Session, a Record for Years; Banking Stocks Shine

Nifty, +0.3%; Sensex, +0.4%; Nifty Midcap, -0.2%; Nifty Smallcap, +0.3%; Model Portfolio, -0.4%

Market Pulse Rally Attempt

Nifty opened on a negative note and made an intraday low of 11,822. Profit booking was seen across the sectors. However, strong buying was seen in the banking stocks, which pushed Nifty higher to close in the green. This was the 10th consecutive session of advancement on Nifty, which is a record in the last few years. 52% of Nifty50 stocks advanced today led by Bajaj Finserv (+3.9%) and Sbi Life Insurance Co (+3.1%). On the flip side, Wipro (Nse) (-6.8%) and Ntpc (-4.3%) were the major decliners.

On the sectoral front, the majority of sectoral indices closed in the green. Nifty Fin Services (+1.8%) advanced the most, followed by other financial related stocks. The advance-decline ratio was in favor of decliners. Of 2,209 stocks traded, 1,006 declined, 832 advanced, and the rest remained unchanged.

Looking forward, we would prefer to see a follow-through day before shifting the market to a Confirmed Uptrend.  A follow-through day is a solid up session, generally a 1.5% or higher gain, with volume being higher than the previous day. Should this occur, the focus will be on ideas that show the best relative strength with good accumulation. Stocks that recover the quickest tend to lead the next run. On the flip side, if Nifty breaches its recent low of 10,790, the market will be moved back to a Downtrend.