Nifty, +0.4%; Sensex, +0.4%; Nifty Midcap, +0.7%; Nifty Smallcap, +0.9%; Model Portfolio, +1.5%
Market Pulse: Confirmed Uptrend
Distribution Day Count: Four
Nifty started on a positive note and traded in the green throughout the session. Being a monthly expiry day, intraday moves were minimal compared to a normal expiry session. Intraday the index reclaimed its 21-DMA, but failed to close above it. Among Nifty50 stocks, 54% closed lower. Maruti Suzuki India (-2.4%) and Power Grid Corp.Of India (-2.2%) were the major decliners.
It was a mixed reaction on the sectoral front. Nifty Metal (+5.0%) was the top gainer, followed by Nifty PSU Bank (+3.3%) and Realty (+1.6%). The advance-decline ratio was in favor of advancers. Of 2,268 stocks traded, 1,184 stocks advanced, 751 stocks declined, and the remaining closed flat.
Currently, the distribution day count stands at four. Nifty is trading above its 50-DMA and closed just below its 21-DMA. Reclaiming its 21-DMA is crucial for a further upward move. On the flip side, if the index breaches its 50-DMA on higher volume and adds a couple of distribution days, we may change the market status to an Uptrend Under Pressure. We continue to recommend a selective approach to increasing risk. Focus on quality ideas emerging from sound bases with RS line at or near new highs while reducing exposure to stocks breaking below key support levels.