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Nifty Continues to Edge Higher; Tata Steel Surges After Strong Results

Posted Date: November 17 2020

Today’s Action

Nifty, +0.7%; Sensex, +0.7%; Nifty Midcap, +1.1%; Nifty Smallcap, +0.3%; Model Portfolio, +1.1%

Market Pulse Confirmed Uptrend

Distribution Day Count: Zero

Taking cues from global markets, Nifty opened with a gap up around 150 points above the previous close. It quickly succumbed to selling pressure and gave up most of its opening gains. During the day, it stabilized around 12,850. Around 60% of the Nifty50 stocks advanced today, led by Tata Motors (+6.2%) and Tata Steel (+5.9%).

On the sectoral front, mixed reactions were observed. Nifty Metal (+2.5%) advanced the most, followed by Nifty PSU Bank (+2.2%) and other finance-related sectors. Market breadth remained in favor of advancers. Of 2,226 stocks traded, 1,062 advanced, 804 declined, and the rest remained unchanged.

Currently, we are in a Confirmed Uptrend and are open to adding new positions coming out of proper bases. We will look for leadership among some good stocks to push the market up. On the flip side, tracking distribution days is crucial. Accumulation of distribution days can halt the uptrend.

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

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