Nifty Closes Above 11,500; Financial and Pharma Stocks Shine

Nifty, +0.7%; Sensex, +0.7%; Nifty Midcap, +1.1%; Nifty Smallcap, +1.5%; Model Portfolio, +1%

Market Pulse Uptrend Under Pressure

Distribution Day Count: Seven

After a gap up opening, Nifty remained volatile but traded in the narrow range for the majority of trading hours. Later, last hour buying interest from investors helped the index close above 11,500 holding decent gains. Volume was lower compared with the previous session. The action in broader indices was very constructive. Nifty Midcap and Smallcap closed 1.1% and 1.5% higher, respectively.

On the sectoral front, Nifty Pharma (+1.9%) outperformed, followed by Nifty PVT Bank (+1.9%) and Bank (+1.7%). Nifty Realty and Media were top losers, closing with a cut of 0.7% and 0.4%, respectively. Advance-Decline ratio was skewed toward advancers. Out of 2,207 stocks traded, 1,105 advanced, 713 declined, and the rest remained unchanged.

As the market is in an Uptrend Under Pressure, investors should proceed ahead with caution. Unless a stock shows exceptional fundamental and technical strength, no new addition to the portfolio is advised. Investors should consider booking profits in stocks that have performed well and have advanced 20–25% from their ideal buy points. Looking forward, we will change the status to a Downtrend, if more distribution days are added or if Nifty breaches the 50-DMA (11,218) and the 200-DMA (10,789). On the flip side, the status will be back to a Confirmed Uptrend if Nifty retakes 11,795 level (high during the recent rally).