Nifty, +0.8%; Sensex, +0.7%; Nifty Midcap, +1.6%; Nifty Smallcap, +0.9%; Model Portfolio, +1.5%
Market Pulse: Confirmed Uptrend
Distribution Day Count: Four
Today, Nifty started the session with a gain of more than 100 points. It then consolidated its gains and traded sideways for most of the session. The index turned volatile in the last hour, but managed to close near the day’s high. It reclaimed its 21-DMA and headed toward a fresh high. Among Nifty50 stocks, 74% closed higher. Titan Company (+3.3%) and Shree Cement (+3.6%) were the major advancers.
All the sectoral indices closed higher. Nifty Realty (+4.8%) led the gains, followed by Nifty Auto (+1.3%) and IT (+1.1%). All the other sectoral indices closed 0.1-0.8% higher. The advance-decline ratio was in favor of advancers. Of 2,037 stocks traded, 1,282 stocks advanced, 677 stocks declined, and the remaining closed flat.
Currently, the distribution day count stands at four. Nifty is trading above all its major key moving averages. It is less than 1% below the 16,000 level. On the flip side, if the index breaches its 50-DMA on higher volume and adds a couple of distribution days, we may change the market status to an Uptrend Under Pressure. We continue to recommend a selective approach to increasing risk. Focus on quality ideas emerging from sound bases with RS line at or near new highs while reducing exposure to stocks breaking below key support levels.