Nifty Ends Higher as November Series F&O Contracts Expire; Reliance Surges

Nifty, +0.7%; Sensex, +0.8%; Nifty Midcap, +0.6%; Nifty Smallcap, +0.8%; Model Portfolio, +1.9%.

Market Pulse: Uptrend Under Pressure

Distribution Day Count: Six

Nifty managed to start the session on a flat note after a sharp fall in the last hour of yesterday’s session. The first hour of the session was highly volatile as the index made an intraday low of 17,351. After, it made a sharp upward move and the index closed near the day’s high. Reliance Industries provided good support as it alone contributed 111 points to the index. If we disregard the Reliance Industries action, it can be said the index closed flat. Today, the November series futures and options expired.

It was mixed action on the sectoral front. Nifty Realty (+1.9%), Media (+1.4%) and Pharma (+1.2%) gained the most. Nifty Auto (-0.5%) and PSU Bank (-0.5%) declined the most. Out of the 2,044 stocks, 1,291 advanced, 694 declined, and the rest remained unchanged.

Source: Google Image

On Monday, the market status was changed to an Uptrend Under Pressure. We will change the status to a Downtrend if more distribution days are added or if Nifty fails to reclaim its 50-DMA and market leaders show signs of deterioration in their price actions. On the flip side, the status will be changed back to a Confirmed Uptrend if Nifty retakes the 18,604 level (the high during the recent rally). Proceed with caution. Stocks slipping below their 50- and 200-DMA on above average volume should be sold. Consider exiting stocks that have declined 8% from the buy price.