Nifty, -0.2%; Sensex, -0.4%; Nifty Midcap, +1.1%; Nifty Smallcap, +0.4%; Model Portfolio, +0.5%.
Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
After opening nearly 100 points lower, Nifty traded sideways in the first half of the session. Buying picked up later in the day, and the index turned positive to touch an intraday high of 17,781. However, last hour’s volatility wiped out gains. As the index fell more than 0.2%, with volume being higher than the previous session, we will consider today’s session a distribution day.
On the sectoral front, Nifty PSU Bank (+2.7%) and Metal (+2.3%) were the top gainers. On the flip side, Nifty Pvt bank (-1.1%) lost the most. Broader market outperformed today. The advance-decline ratio was in favor of advancers. Of 2,044 stocks traded, 1,147 stocks advanced, 813 stocks declined, and the remaining closed flat.
With today’s distribution day, the count increased to three. Further, Nifty is trading above all its key moving averages. We would like the index to continue to trade above its key moving averages. After such a sudden rally, one must also be prepared for some mild pullback and profit booking. In the process, if the index adds a couple of distribution days, stages a reversal, or breaches its key moving averages, we may change the market status to an Uptrend Under Pressure. Reducing exposure to stocks breaking below their 21- or 50-DMA on higher volume is important.