Nifty Extends Gain for Seventh Consecutive Session; Financial Stocks Continue to Shine

Nifty, +1.4%; Sensex, +1.6%; Nifty Midcap, +0.3%; Nifty Smallcap, -0.1%; Model Portfolio, -2%

Market Pulse Confirmed Uptrend

Distribution Day Count: Zero

Nifty opened to strong gains this morning on vaccine news. It kept the momentum intact throughout the day and made higher highs and higher lows in the hourly chart to close above 12,600 holding solid gains. Volume was significantly higher than the previous day. Nifty is currently trading 6% and 8.7% above its 21- and 50-DMA, respectively. In the broader market, both Midcap and Smallcap failed to catch up with the general market. Midcap closed 0.3% higher, while Smallcap was down 0.1%.

On the sectoral front, barring Nifty Pharma (-4.3%) and Nifty IT (-3.9%), all other sectors closed in the green. Financial stocks continued to rally ahead and advanced the most for the day. Nifty Bank, Financial Service, PSU Bank, and Pvt Bank advanced in the range of 3.5–4.1%. Market breadth remained in favor of decliners. Of 2,230 stocks traded, 857 advanced, 1,016 declined, and the rest remained unchanged.

Currently, we are in a Confirmed Uptrend and are open to adding new positions coming out of proper base formation. We will look for leadership among some good stocks to push the market up. On the flip side, tracking distribution days is crucial. Accumulation of distribution days can halt the uptrend.