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Nifty Climbs New High; SBI and ITC Outperform

Posted Date: February 04 2021
Today’s Action

Nifty, +0.7%; Sensex, +0.7%; Nifty Midcap, +1.1%; Nifty Smallcap, +1.6%; Model Portfolio, +1.1%

Market Pulse Confirmed Uptrend

Distribution Day Count: Six

Nifty opened lower this morning but gained strength as the session progressed and made a new all-time-high. Volume was higher compared with yesterday’s session. SBI and ITC were the top Nifty gainers. Broader indices continued their outperformance. Advance-decline ratio was skewed toward advancers. Out of 2,222 stocks, 1,195 advanced and 690 declined. On the sectoral front, barring Nifty IT (-0.4%) all other indices closed in the green. Nifty FMCG was the outperformer with a gain of 2.5%, followed by Nifty Metal (+2%). Nifty Bank, Auto, and Financial Services continued their rally and gained more than 1.0–1.5%.

Last week, market status was changed to an Uptrend Under Pressure due to a rise in distribution days and Nifty breaching its 21-DMA. Yesterday, Nifty made a new high and moved above the previous rally high of 14,754. Hence, we changed the market status to a Confirmed Uptrend. However, the distribution day count remains elevated at six. Nifty is more than 3.5% above its 21-DMA. If 21-DMA is breached, we may downgrade the status to an Uptrend Under Pressure. Without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions.


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