Nifty, +0.8%; Sensex, +0.6%; Nifty Midcap, +1.4%; Nifty Smallcap, +1.2%; Model Portfolio, +1.7%
Market Pulse Confirmed Uptrend
Distribution Day Count: Two
Today, Nifty opened at a record high above 14,100 but witnessed profit booking and traded toward the day's low of 13,953 in the initial two hours of the session. However, it posted a smart recovery of about 170 points off lows during the day and closed holding solid gains. Volume was higher than the previous session. The broader market outperformed compared with the general market. Midcap closed 1.4% higher, while smallcap was up 1.2% for the day.
On the sectoral front, barring Nifty Bank and Nifty Pvt Bank, all other sectoral indices closed in the green. Nifty Metal(+5.1%) extended its gain followed by Nifty IT which was up 2.7%. Nifty Media, Auto, PSU Bank and Pharma were up in the range of 1-1.6%. Market breadth was skewed toward advancers. Of 2,229 stocks traded, 1,361 advanced, 580 declined, and the remaining were unchanged.
With leadership broadening and indices above relevant intermediate term moving averages, we will continue to look for leadership-quality growth names to form entry points. If a pullback/consolidation happens, it will be crucial for Nifty to hold its 21-DMA. It is advised to closely review the existing positions and book profits in stocks that are extended from their moving averages and showing technical weakness. Also, tracking distribution days is crucial as rise in distribution days can halt the uptrend.