Nifty Extends Gain; Midcap and Smallcap Stocks Outperform

Today’s Action

Nifty, +1.2%; Sensex, +1.3%; Nifty Midcap, +1.8%; Nifty Smallcap, +1.6%; Model Portfolio, +1.9%

Market Pulse: Confirmed Uptrend

Distribution Day Count: Three

Nifty opened with a gap-up of more than 140 points, taking strong global cues. It held the opening gain throughout the day and traded in a narrow range near the day’s high of 15,137. Volume was higher than the previous session. Broader market indices showed solid outperformance. Nifty Midcap closed 1.8% higher and Smallcap advanced 1.6%.

On the sectoral front, mixed reactions were observed. Nifty Auto (+3.2%) led the gains followed by Nifty Media and Nifty Metal, which advanced 1.7% each. On the flip side, Nifty PSU (-1.3%) was the major decliner, while Nifty FMCG and Nifty Pharma declined 0.2% each. The advance-decline ratio was in favor of advancers. Of the 2,259 stocks traded, 1,204 advanced, 710 declined, and the rest remained unchanged.

On a technical perspective, Nifty retook its 50-DMA, which is a good sign. Without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions. If the index falls further, adds a distribution day, and breaches its key moving averages, we may change the market status to an Uptend Under Pressure. Continue to trim or avoid ideas lagging and/or breaking down below major moving averages.

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