Nifty, +0.01%; Sensex, -0.05%; Nifty Midcap, -0.1%; Nifty Smallcap, -0.7%; Model Portfolio, -0.9%
Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
Nifty started the session on a positive note and hit an intraday high of 16,338 within the first five minutes of the session. Selling pressure gripped markets as the index lost around 160 points (1%) from the intraday high. However, it staged a reversal and pared all losses to close the session on a flat note. The broader market continued to underperform the index.
On the sectoral front, Nifty Metal (+3.1%) was the top gainer, followed by Nifty PSU Bank (+0.5%) and Realty (+0.3%). On the flip side, Nifty Pharma (-1.5%) was the major decliner. The advance-decline ratio favored the decliners. Of 1,995 stocks traded, 661 stocks advanced, 1,284 stocks declined, and the remaining closed flat.
Currently, the distribution day count stands at three. Nifty is trading near its all-time high. But the broader market action remains weak. If the index adds a couple of distribution days, stages a reversal, or breaches 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. As there is weakness in the broader market, we recommend being selective when investing in new stock.