Nifty Auto and Realty Led Gains; Bank of Baroda Reduces Home Loan Rates to 6.5%

Nifty, +0.8%; Sensex, +0.8%; Nifty Midcap, +1.9%; Nifty Smallcap, +1.2%; Model Portfolio, +0.8%.

Market Pulse: Confirmed Uptrend

Distribution Day Count: Three

Nifty gapped 50 points higher this morning, made a high of 17,857, and traded range bound around 17,800–17,850 during the day. However, Nifty breached 17,800 in the last hour and closed just below it. Tata Motors and Titan gained more than 10% while Maruti and M&M advanced around 5%. Action was strong in the broader market. Midcap and Smallcap indices outperformed benchmark indices. On the sectoral front, barring Nifty Oil & Gas (-0.2%), all other indices closed higher. Nifty Realty closed 6% higher and Nifty Auto was up 4%. Nifty IT, Pharma, Metal, and Bank closed 0.5–2.0% higher. The advance-decline ratio was in favor of advancers. Of 2,025 stocks traded, 1,407 stocks advanced, 555 declined, and the remaining closed flat.

The distribution day count currently stands at three. Further, Nifty is trading above all its key moving averages. We would like the index to continue trading above its key moving averages. After such a sudden rally, one must also be prepared for some mild pullback and profit booking. In the process, if the index adds a couple of distribution days, stages a reversal, or breaches its key moving averages, we may change the market status to an Uptrend Under Pressure. Reducing exposure to stocks breaking below their 21- or 50-DMA on higher volume is important.

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