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Nifty Reverses Opening Hour Loss, Ends Higher; December WPI Inflation Stood at 1.22%

Posted Date: January 14 2021
Today’s Action

Nifty, +0.2%; Sensex, +0.2%; Nifty Midcap, +0.1%; Nifty Smallcap, +0.1%; Model Portfolio, -0.1%

Market Pulse Confirmed Uptrend

Distribution Day Count: Three

Nifty opened the day on a negative note and slipped 80 points in the first hour. It looked like Nifty’s kite won’t fly higher today. However, as the day wore on, it staged an upside reversal and closed in the green. The momentum shift was mainly due to a sharp recovery in Infosys after opening lower and TCS gaining more strength as the day progressed. On the sectoral front, Nifty FMCG (+0.8%) and Pharma (+0.8%) were the top gainers. On the flip side, Nifty Metal closed 1% lower. Market breadth leaned toward decliners. Of 2,226 stocks traded, 894 advanced, 980 declined, and the remaining were unchanged.

With leadership broadening and indices above relevant intermediate term moving averages, we will continue to look for leadership-quality growth names to form entry points. If a pullback/consolidation happens, it will be crucial for Nifty to hold its 21-DMA. 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 as rise in distribution days can halt the uptrend.

 
 
 

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