Nifty Closes Flat in a Volatile Session; Motherson Sumi Profit Surges 4x y/y

Weekly Action

Nifty, +1.6%; Sensex, +1.6%; Nifty Midcap, +2.2%; Nifty Smallcap, +3.9%; Model Portfolio, +3.0%.

Market Pulse: Confirmed Uptrend

Distribution Day Count: Five

Weekly Market Review

After a fabulous run in the previous week, Nifty continued its positive momentum on Monday as it closed 1.3% higher. In the next four trading sessions, it closed almost flat. Today, Nifty opened on a flat note and hit intraday high of 15,243 in the first half. Profit booking was observed in the second half as it lost over 150 points in quick succession. Last hour buying helped the index close flat for the session.

Nifty IT (+3.0%) was the top gainer for the week, followed by Realty (+2.7%). On the flip side, Nifty PSU Bank (-2.3%) succumbed to profit booking and was the major decliner, followed by FMCG (-2.1%). Today, the advance-decline ratio was in favor of decliners. Of the 2,229 stocks traded, 847 stocks advanced, 1,029 stocks declined, and the remaining stocks were unchanged.

Wednesday last week, Nifty made a new high and moved above the previous rally high of 14,754. Hence, we changed the market status to a Confirmed Uptrend. However, the distribution day count remains elevated at five. Nifty is more than 3.5% above its 21-DMA. If 21-DMA is breached, we may downgrade the status to an Uptrend Under Pressure. Without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions.