Nifty Ends Higher in all Five Sessions of the Week; Financial Stocks Lead the Rally

Posted Date: November 06 2020
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Weekly Action

Nifty, +5.3%; Sensex, +5.9%; Nifty Midcap, +4.3%; Nifty Smallcap, +0.7%; Model Portfolio, +3.3%.

Market Pulse Confirmed Uptrend

Distribution Day Count: Zero

Weekly Market Review

After testing its 50-DMA last Friday, Nifty found support at it and reclaimed its 21-DMA during the week. It ended higher in all five trading sessions of the week. It is just 1.3% below its all-time high of 12,430. Today, Nifty opened on a positive note and was volatile with positive bias. Volatility to remain higher as the U.S. general election result is awaited.

Barring Nifty Realty (-0.6%), all the sectoral indices closed higher during the week. Nifty Pvt Bank (+12.3%) advanced the most, followed by other financial related indices. Today, the advance-decline ratio was skewed toward advancers. Of 2,215 stocks traded, 1,107 advanced, 710 declined, and the rest remained unchanged.

Nifty and Sensex closed yesterday's session with strong gains, up about 1.8%. Though volume was a little lower than the previous session on Nifty, it was above average. Also, volume was 1.9x on Sensex.  Nifty and Sensex are both above their upward trending 21- and 50-DMA. In addition, leading stocks are progressing well on breaking out from consolidation, and market breadth has improved on comparatively higher volume. Hence, we considered the action as a follow-through day, and we have upgraded the market to a Confirmed Uptrend.

 

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