Article Image

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

Posted Date: September 11 2020
Weekly Action

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).

What do you think? Please email us any questions or comments.

Disclaimer: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.For more information, see our Legal disclosures here.

Related Article

Loading...