MarketsmithIndia Articles

Nifty Closes Near Day’s Low; Metals Underperform

Posted Date: May 20 2021
Today’s Action

Nifty, -0.8%; Sensex, -0.7%; Nifty Midcap, -0.1%; Nifty Smallcap, -0.2%; Model Portfolio, -0.6%

Market Pulse: Confirmed Uptrend

Distribution Day Count: Three

Nifty, after opening briefly in the green, turned negative in the opening hour. It continued to trend lower and closed near the day's low. Volume was lower than the previous session, which helped the index avoid a distribution day. Broader indices performed better than benchmark indices. The advance-decline ratio was in favor of decliners. Of the 2,259 stocks traded, 937 advanced, 972 declined, and the rest remained unchanged. On the sectoral front, barring Nifty Realty (+1%) and PSU Bank (+0.7%), all other indices closed in the red. Nifty Metal closed more than 3% lower. Nifty Auto, Bank, Financial Service, FMCG, and IT closed 0.2–1.0% lower.

Nifty recently retook its 50-DMA, which is a positive sign. We would like the index to hold its 50-DMA and trade above that. Without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions. If the index falls further, adds a distribution day, and breaches its key moving averages, we may change the market status to an Uptend Under Pressure. Focus on quality ideas emerging out of sound bases with relative strength line at or near new highs while reducing exposure to stocks breaking below key support levels.

Key News

What do you think? Please email us any questions or comments.

Disclaimer: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.For more information, see our Legal disclosures here.

Related Article

Loading...