MarketsmithIndia Articles

Nifty Retakes its 50-DMA; Financial Related and Metal Stocks Surge

Posted Date: May 17 2021
Today’s Action
Nifty, +1.7%; Sensex, +1.7%; Nifty Midcap, +1.8%; Nifty Smallcap, +1.2%; Model Portfolio, +2.5%
 
Market Pulse:  Confirmed Uptrend
 
Distribution Day Count:    Three
 
Nifty opened around 100 points, higher tracking global cues. The index made a new intraday high, and reclaimed its 50-DMA. As volume was lower than yesterday’s, today’s action didn’t qualify as an additional follow-through day. Of the Nifty50 stocks, 78% advanced led by Indusind Bank(Nse) (+7.5%) and State Bank Of India (+6.7%).
 
Barring Nifty Media (-0.5%) and Pharma (-0.2%), all the sectoral indices closed in the green. Financial related indices led the rally followed by Metal stocks. The advance-decline ratio was in favor of advancers. Of the 2,299 stocks traded, 1,333 advanced, 627 declined, and the rest remained unchanged.
 
On a technical perspective, Nifty retook its 50-DMA, which is a good sign. Without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions. If the index falls further, adds a distribution day, and breaches its key moving averages, we may change the market status to an Uptrend Under Pressure. Continue to trim or avoid ideas lagging and/or breaking down below major moving averages.
 
Key News

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...