Nifty Closes below 18,000; Realty Stocks Underperform

Nifty, -0.8%; Sensex, -0.7%; Nifty Midcap, -0.8%; Nifty Smallcap, -0.5%; Model Portfolio, -0.8%.

Market Pulse: Confirmed Uptrend

Distribution Day Count: Four

Nifty gapped lower below 18,000 at the start of the trading session and remained under pressure for most of the day. It made an intraday low of 17,800. As the volume was lower than yesterday’s session, we will not mark it as a distribution day. The broader market was also under selling pressure. On the sectoral front, barring Nifty Metal (+0.4%), all sectoral indices closed in the red. Nifty Realty (-2.4%) was the top loser. Nifty Bank, Auto, Financial Services, FMCG, and Pharma closed 1–1.4% lower. Out of the 2,071 stocks traded, 787 advanced, 1,207 declined, and the remaining closed flat.

The distribution day count currently stands at four. If the market succumbs to selling pressure and breaches its 50-DMA, we may change the market status to an Uptrend Under Pressure. Nifty is trading less than 1% above its 50-DMA. Reducing exposure to stocks breaking below their 21- or 50-DMA on higher volume is important.