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Nifty Closes Above 11,450; Financial Stocks Lead the Rally

Posted Date: August 24 2020
Today’s Action

Nifty, +0.8%; Sensex, +1%; Nifty Midcap, +0.7%; Nifty Smallcap, +1.7%; Model Portfolio, +0.2%

Market Pulse Confirmed Uptrend

After a gap-up opening, Nifty kept the bullish momentum intact and traded toward the day's high of 11,497 in the first half of the trading session. In the second half, it traded mostly sideways and closed the day holding solid gains. Volume was on the lower side compared with the previous session. Broader markets continued to witness strong buying interest. Nifty Midcap and Smallcap closed with gains of 0.7% and 1.7%, respectively.

On the sectoral front, it was a mixed action. Financial stocks led the rally with Nifty Pvt Bank, Nifty Financial Service, and Nifty Bank closing more than 2% higher. On the flip side, Nifty Realty, Nifty Pharma, and Nifty IT ended the day with a loss of 0.3–1.0%. Market breadth was skewed toward advancers. Of 2,187 stocks traded, 1,070 advanced, 809 declined, and the remaining traded flat.

The Indian market remains in a Confirmed Uptrend. We would like to see fresh names flexing their muscles for a sustainable rally. Finding favorable entries into powerful breakouts may be the best use for new money in the current market. However, things can change quickly due to high volatility. We are operating in an uncertain environment where information is distributed unevenly, wherein outside forces, either intentionally or unintentionally, affect prices across various time frames. We will continue to monitor the behavior of the market and keep an open mind as to how it unfolds.

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