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Nifty Continues to Edge Higher; Metal and Pharma Stocks Outperform

Posted Date: May 10 2021
Today’s Action

Nifty, +0.8%; Sensex, +0.6%; Nifty Midcap, +0.9%; Nifty Smallcap, +1.5%; Model Portfolio, +1.3%

Market Pulse: Confirmed Uptrend

Distribution Day Count: Two

Nifty started the session on a positive note, opening around 100 points higher. It traded in a narrow range of just 70 points relatively lower than in recent times. Thus, it closed in the green for the fourth consecutive session, advancing almost 450 points. Of Nifty50 stocks, 76% closed in the green, led by Coal India (Nse) (+7.5%) and UPL (+7.2%).

All sectoral indices closed in the green. Nifty Metal (+3.1%) and Pharma (+2.8%) advanced the most. The advance-decline ratio was in favor of advancers. Of the 2,298 stocks traded, 1,344 advanced, 612 declined, and the rest remained unchanged.

Currently, Nifty is just 4% off highs, but it has advanced higher on less than average volume, which is not a good sign. Ideally, we would want the volume to be above average for any upward move. However, 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 and adds a couple of distribution days, we may change the market status to an Uptend Under Pressure. Continue to trim or avoid ideas lagging and/or breaking down below major moving averages.

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