Nifty Retakes its 21-DMA; BHEL and IRCTC Announce Results

Nifty, +1.2%; Sensex, +1.3%; Nifty Midcap, -0.9%; Nifty Smallcap, -0.5%; Model Portfolio, +2.5%.

Market Pulse Uptrend Under Pressure

Distribution Day Count: Six

Weekly Market Review

After breaching its 21-DMA last week, Nifty moved down toward its 50-DMA during the week. However, Thursday’s action helped Nifty reclaim its 21-DMA. On the weekly chart, it found support at its 10-WMA. Today, it moved in a relatively narrow range and volume was lesser than the 50-day average trading volume.

During the week, the index added two distribution days (Tuesday and Wednesday). However, distribution day registered on August 3 expired on Monday. Overall, it has six distribution days.

During the week, the sectoral indices reaction was mixed. Nifty Energy (+3.3%) was the biggest advancer due to the rally in Reliance Industries (+11.7%), which has over 36% weightage in the index, followed by Nifty IT (+3.1%), FMCG (+0.5%), and Pharma (+0.3%). On the flipside, Nifty Metal (-2.7%) and Pvt Bank (-2.4%) were the major decliners.

As the market condition is in an Uptrend Under Pressure, investors should proceed ahead with caution. Unless a stock shows exceptional fundamental and technical strength, no new addition to the portfolio is advised. Investors should consider booking profits in stocks that have performed well and advanced 20–25% from their ideal buy points. Looking forward, we will change the status to a Downtrend, if more distribution days are added or if Nifty breaches its 50-DMA and 200-DMA. On the flip side, the status will be back to a Confirmed Uptrend if Nifty retakes 11,795 level (high during the recent rally).