Nifty, +0.3%; Sensex, +0.3%; Nifty Midcap, +0.6%; Nifty Smallcap, +0.8%; Model Portfolio, +0.7%.
Market Pulse: Confirmed Uptrend
Distribution Day Count:Three
Today, Nifty started the session with mild cuts and made the day’s low of 17,864. In the afternoon, strong buying was seen as the index scaled 18,000 for the second consecutive session. The index closed just a tad below 18,000. Of Nifty50 stocks, 62% closed in the green, led by Titan Company (+5.5%) and Bajaj Auto (+3.3%).
The broader market indices also closed higher, outperforming the benchmark indices. Sectoral action was similar to that of yesterday as, barring Nifty IT (-0.9%), all indices closed higher. Nifty PSU Bank (+3.1%) was the top gainer. Nifty Media, FMCG, and Metal closed 1.1–1.5% higher. The advance-decline ratio favored advancers. Of 2,049 stocks traded, 1,025 stocks advanced, 947 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. We maintain a positive view on the market but 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.