Nifty Ends Flat; Distribution Day Expires; NBCC Secures Rs 968.5 Crore Work Order

Nifty, +0.01%; Sensex, +0.05%; Nifty Midcap, +0.03%; Nifty Smallcap, -0.12%; Model Portfolio, +0.7%.

Market Pulse: Confirmed Uptrend

Distribution Day Count: One

Today, Nifty started the session on a positive note, opening around 80 points higher. However, within the first hour, it pared all gains and turned negative for a brief while. It quickly found support around 17,800 and ended the session flat. Five out of the top six Nifty50 gainers are Auto stocks, of which Maruti Suzuki India (+6.5%), Tata Motors (+4.3%), and Mahindra & Mahindra (+4.1%) were the major gainers.

On the sectoral front, Nifty IT (-2.9%), Pharma (-0.9%), and FMCG (-0.9%) closed lower. On the flip side, Nifty Auto (+3.2%) advanced the most, followed by Realty (+3.0%). The advance-decline ratio was in favor of decliners. Of 2,060 stocks traded, 907 stocks advanced, 1,055 stocks declined, and the remaining closed flat.

Per the 25-session rule, one distribution day expired today, thus decreasing the count to one. Further, Nifty is now trading above all its key moving averages. We would like the index to continue to trade above its key moving averages. After such a sudden rally, one must also be prepared for some mild profit booking. In the process, if the index adds a couple of distribution days, stages a reversal, or breaches its key moving averages, we may change the market status to an Uptrend Under Pressure. Reducing exposure to stocks breaking below their 21- or 50-DMA on higher volume is important.

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