Nifty Ends Just Below its 21-DMA; BPCL Shares Rally as Board Approves Stake Sale in Numaligarh Refinery

Today’s Action

Nifty, +1.1%; Sensex, +0.9%; Nifty Midcap, +1.7%; Nifty Smallcap, +1.2%; Model Portfolio, +1.4%

Market Pulse Confirmed Uptrend

Distribution Day Count: Four

After opening over 100 points higher, Nifty quickly pared its gains to turn negative for the session. It then traded in a narrow range before closing the session near its day’s high. Volume was higher than the previous session. In the broader market, both midcap and smallcap outperformed to close with a gain of 1.7% and 1.2%, respectively.

Similar to yesterday's session, barring Nifty PSU Bank (-0.2%), all the sectoral indices closed in the green. Nifty Auto (+3.2%) advanced the most followed by Nifty IT (+3.0%). Advance-decline ratio was skewed toward advancers. Out of 2,232 stocks, 1,160 advanced, 724 declined, and the remaining were unchanged.

Yesterday one distribution day (22/1/2021) expired due to aging, after which the total count decreased to four. A couple of more distribution days will expire this week. Nifty is 3.2% above its 50-DMA. If 50-DMA is breached, we may downgrade the status to an Uptrend Under Pressure. However, without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions.