Nifty Reclaims 21-DMA; Mindtree Q1 PAT and Revenue Beat Consensus

Nifty, +0.8%; Sensex, +0.8%; Nifty Midcap, +0.2%; Nifty Smallcap, +1%; Model Portfolio, +1.5%

Market Pulse: Confirmed Uptrend

Distribution Day Count: Four

Today, Nifty gained about 100 points at the opening, taking a cue from global markets. The index consolidated its gains and traded in a narrow range to close near the day’s high. In the process, Nifty reclaimed its 21-DMA. Volume was higher compared to that in yesterday’s session. In the broader market, the Smallcap index outperformed, while Midcap underperformed for the day.

On the sectoral front, among the major sectors, barring Nifty FMCG (-0.2%) and Nifty IT(-0.3%), all closed in the green. Nifty Fin Service (+1.5%) was the day’s highest gainer followed by Nifty Bank and Nifty PVT bank , which advanced 1.4% each. The advance-decline ratio was in favor of advancers. Out of 2,317 stocks traded, 1,053 stocks advanced, 885 stocks declined, and the remaining closed flat.

Nifty has reclaimed its 21-DMA. It is crucial for the index to hold and trade above this level. On the flip side, the distribution day count is currently at four. If the index falls further and adds a distribution day, we may change the market status to an Uptrend Under Pressure. We continue to recommend a selective approach to increasing risk. Focus on quality ideas emerging out of sound bases with RS line at or near new highs while reducing exposure to stocks breaking below key support levels.

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