Nifty Makes New High for Third Consecutive Day; FMCG, Pharma Stocks Lead Gains

Nifty, +0.7%; Sensex, +0.8%; Nifty Midcap, +1.1%; Nifty Smallcap, +1.3%; Model Portfolio, -0.01%

Market Pulse Confirmed Uptrend

Distribution Day Count: Two

Nifty opened relatively flat this morning but gained momentum as the day wore on. It was the third consecutive day when Nifty made a new high. Midcap and Smallcap indices continued to rally and outperformed benchmark indices. On the sectoral front, all major indices closed in the green. Nifty IT, Pharma, and PSU Banks closed 1.5–2.0% higher. Also, gain in Nifty IT, Bank, and Financial Services pushed the market higher. Market breadth was skewed toward advancers. Out of 2,239 stocks traded, 1,382 stocks advanced, 521 declined, and the remaining stocks unchanged. Nifty is trading 4%, 9.3%, and 24% above its 21-, 50-, and 200-DMA, respectively.

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. After a strong rally, pullback/consolidation (if any) is a constructive sign if Nifty holds its 21-DMA. It is advised to closely review the existing positions and book partial profits in stocks that are extended from their moving averages. On the flip side, tracking distribution days is crucial. Accumulation of distribution days can halt the uptrend.