Nifty Hits 14,000, Bids Adieu to 2020 with 14.9% Gain; Jubilant Foods to Acquire 10.8% stake in Barbeque Nation

Today’s Action

Nifty, +0.0%; Sensex, +0.01%; Nifty Midcap, +0.5%; Nifty Smallcap, +0.3%; Model Portfolio, +0.5%

Market Pulse Confirmed Uptrend

Distribution Day Count: Three

Today, Nifty opened about 20 points lower than the previous close. Though the index remained volatile through the day, it traded in a narrow range and closed flat. Volume was higher than the previous session. Broader markets posted outperformance as compared with the general market. Midcap closed 0.5% higher, while smallcap showed gains of 0.3% for the day. Nifty hits 14,000 for the first time ever and gained 14.9% in 2020.

On the sectoral front, mixed reaction was observed. Nifty Realty extended its gain (+1.2%), while Nifty Media, Metal and Pharma were up in the range of 0.7-1.0%. On the flip side, Nifty PSU bank (-0.5%) and FMCG (-0.4%) were the top two decliners. Market breadth was skewed toward advancers. Of 2,229 stocks traded, 1,074 advanced, 790 declined, and the remaining were unchanged.

With leadership broadening and indices above relevant intermediate term moving averages, we will continue to look for leadership-quality growth names to form entry points. If a pullback/consolidation happens, it will be crucial for Nifty to hold its 21-DMA. It is advised to closely review the existing positions and book profits in stocks that are extended from their moving averages and showing technical weakness. Also, tracking distribution days is crucial as rise in distribution days can halt the uptrend.