Nifty Scales 13,500; Private Banks Outperform

Nifty, +1%; Sensex, +1.1%; Nifty Midcap, +0.6%; Nifty Smallcap, +0.5%; Model Portfolio, +0.6%

Market Pulse Confirmed Uptrend

Distribution Day Count: Two

Nifty continues to make higher highs for the fifth consecutive session. After a gap-up opening, it traded higher and hit 13,500. Broader markets underperformed as Midcap and Smallcap indices gained around 0.5%. Nifty is trading 4% and 10% above its 21- and 50-DMA. On the sectoral front, mixed action was seen. Nifty Private Bank and Realty rallied the most, followed by Nifty IT, FMCG, and Financial Services. On the flip side, Nifty PSU Bank and Metal took a breather, closing in the red. Market breadth was skewed toward advancers. Out of 2,217 stocks traded, 1,110 stocks advanced, 785 declined, and the remaining stocks 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. After a strong rally, pullback/consolidation (if any) is a constructive sign if Nifty holds its 21-DMA. It is advised to closely review the existing positions and book partial profits in stocks that are extended from their moving averages. On the flip side, tracking distribution days is crucial. Accumulation of distribution days can halt the uptrend.