Nifty Fails to Retake 21-DMA; Metal and Realty Stocks Rally

Nifty, +0.2%; Sensex, +0.01%; Nifty Midcap, +1.0%; Nifty Smallcap, +0.9%; Model Portfolio, +0.6%

Market Pulse Confirmed Uptrend

Distribution Day Count: Five

After a huge sell-off yesterday, Nifty opened with over 100 points higher today. The session was volatile as Nifty traded in a 200-point range. It crossed its 21-DMA intraday but failed to close above it. Today’s volume was higher than the previous session. About 68% of Nifty50 stocks closed higher, led by Tata Steel (+6.5%) and Tata Motors (+6.4%).

Mixed reaction was observed on the sectoral front. Nifty Metal (+3.9%) was the top gainer followed by Realty (+2.7%). All the financial related sectoral indices closed lower. Advance-decline ratio was skewed toward advancers. Out of 2,234 stocks, 1,142 advanced, 756 declined, and the remaining were unchanged.

The distribution day count decreased to five yesterday as one distribution day expired. We may downgrade the status to an Uptrend Under Pressure if it falls on higher volume and distribution day count increases. However, a couple of more distribution days will expire by Monday next week. Without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions.