Nifty, +0.7%; Sensex, +0.8%; Nifty Midcap, -0.5%; Nifty Smallcap, -0.3%; Model Portfolio, -0.4%
Market Pulse Rally Attempt
Nifty opened on a slightly positive note tracking Asian markets. Reliance which has the highest weightage in the index, helped Nifty to edge higher. After the first 30 minutes of the session, Nifty traded in a range of around 60 points and near day’s high. 52% of Nifty50 stocks ended in the green, led by Titan Company (+4.5%) and Bajaj Auto (+3.5%). On the flipside, Bajaj Finance (-4.1%) and Bharat Petroleum (-2.8%) were the major draggers.
It was a mixed reaction on the sectoral front. Nifty Auto (+1.4%) advanced the most, followed by Nifty IT (+0.6%) and Pvt Bank (+0.6%). On the flip side, Nifty Media (-2.5%), Realty (-1.9%), and Metal (-1.5%) were the decliners. The advance-decline ratio was in favor of decliners. Of 2,213 stocks traded, 1,131 declined, 728 advanced, and the rest remained unchanged.
Looking forward, we would prefer to see a follow-through day before shifting the market to a Confirmed Uptrend. (A follow-through day is a solid up session, generally a 1.5% or higher gain, with volume being higher than the previous day). Should this occur, the focus will be on ideas that show the best relative strength with good accumulation. Stocks that recover the quickest tend to lead the next run. On the flip side, if Nifty breaches its recent low of 10,790, the market will be moved back to a Downtrend.