Nifty Reclaims 21-DMA; Private Banks Lead Gains

Today’s Action

Nifty, +1%; Sensex, +1.2%; Nifty Midcap, -0.5%; Nifty Smallcap, -1%; Model Portfolio, -1.1%

Market Pulse Confirmed Uptrend

Distribution Day Count: Three

Nifty gapped higher this morning, but slipped around 200 points from opening hour high. However, in the last couple of hours, it staged an upside reversal and reclaimed its 21-DMA, closing near 15,100. The volume was comparatively higher. On the sectoral front, there was mixed action. Nifty Bank and Financial Services were the top gainers. Kotak Bank, HDFC Bank, ICICI Bank, and HDFC closed 2.5–3.0% higher. Nifty IT closed more than 1% higher. On the flip side, Nifty Metal was down more than 2%. The selling pressure was high in the broader market. Advance-decline ratio was in favor of decliners. Out of 2,242 stocks, 715 advanced, 1,185 declined, and the rest remained unchanged.

Last week, three distribution days expired due to aging and one was added on Friday, after which the total count stands at three. The decrease in distribution day count is a good sign. However, the market is volatile and Nifty has found resistance near 15,100 for three consecutive sessions. Without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions. We may downgrade the status to an Uptrend Under Pressure if Nifty falls below its 50-DMA on higher volume and the distribution day count increases.