Nifty, -0.1%; Sensex, +0.03%; Nifty Midcap, -1.6%; Nifty Smallcap, -0.8%; Model Portfolio, -0.8%.
Market Pulse: Confirmed Uptrend
Distribution Day Count: Four
Weekly Market Review
Nifty took a roller-coaster ride during the week and posted a minor loss after registering gains for seven straight weeks. Nifty started the week on a negative note and witnessed significant profit booking on Monday. However, the index posted a sharp reversal on Tuesday and remained bullish for the rest of the week. The index was able to recover most of its losses and closed only 0.1% lower for the week. On the broader market, Nifty Midcap and smallcap closed 1.6% and 0.8% lower, respectively. The index has four distribution days with one day set to expire on Monday.
On the sectoral front, Nifty IT (+3.2%) advanced the most. It was followed by Nifty Pharma (+1.2%) and FMCG (+0.04%). Rest all other indices closed in the red for the week. PSU Bank (-3.5%) continues to decline the most, followed by Media (-3.2%) and Metal (-2.3%). Today, the advance-decline ratio was inclined toward the advancers. Of the 2,233 stocks traded, 708 advanced, 1,188 declined, and the remaining were unchanged.
Looking ahead, we would like the index to hold its 21-DMA and trade above it. 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. If the distribution day is elevated further, it can halt the uptrend.