Nifty Ends Week at Record High; Metal, Financial, and IT Stocks Close Higher

Nifty, +1.6%; Sensex, +1.4%; Nifty Midcap, +2.1%; Nifty Smallcap, +1.9%; Model Portfolio, +3.3%

Market Pulse: Confirmed Uptrend

Distribution Day Count: Three

Weekly Market Review

Nifty advanced on all five occasions during the week. It made a new all-time high twice during the week. Today, after a flat opening, Nifty was down around 80 points and made the day’s low of 16,565 within the first 20 minutes. The index later found good buying support, marking a fresh all-time high of 16,722. Of Nifty50 stocks, 78% advanced, led by Ultratech Cement (+3.5%) and Hindalco Industries (+3.3%).

During the week, the broader market indices outperformed the general market. Midcap and smallcap were up 2.1% and 1.9%, respectively. Barring Nifty Auto (-1.1%) and Media (-0.7%), all sectoral indices closed higher for the week. Nifty Energy (+3.1%) was the top gainer. Nifty Metal, Financial, and IT closed 2.2–3.0% higher. Today, the advance-decline ratio was in favor of advancers. Of the 2,005 stocks traded, 1,194 advanced, 748 declined, and the rest remained unchanged.

One distribution day expired yesterday after market hours, reducing the count to three. Nifty is now trading near its all-time high. 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.