Nifty Scales Fresh High; IT, FMCG, and Realty Stocks Lead

Nifty, +0.9%; Sensex, +0.9%; Nifty Midcap, +1%; Nifty Smallcap, +1%; Model Portfolio, +1.6%

Market Pulse: Confirmed Uptrend

Distribution Day Count: One

Nifty, after a flat opening, made a unidirectional upward movement throughout the session and hit fresh high. The index closed near the day’s high holding solid gains. Volume was lower than in the previous session, which is a sign of concern. In the broader market, Nifty Midcap and Smallcap advanced 1% each, performing in line with the major indices.

On the sectoral front, barring Nifty Auto (-0.2%) and Nifty PSU Bank (-0.5%), all other sectors closed in the green. Nifty IT (+1.7%) emerged the top gainer for the day, followed by Nifty FMCG (+1.6%) and Nifty Realty (+1.3%). Similarly, Nifty Metal, Nifty Pharma, and Nifty Bank advanced in the range of 0.7–1.0%. The advance-decline ratio was in favor of advancers. Of 2,005 stocks traded, 1,287 stocks advanced, 630 stocks declined, and the remaining closed flat.

The distribution day count now stands at one as one day expired today. Further, Nifty is now trading near its all-time high and is placed above all its key moving averages. We would like the index to continue this trend. After such a sudden rally, one must also be prepared for some mild profit booking. In the process, if the index adds a couple of distribution days, stages a reversal, or breaches its key moving averages, we may change the market status to an Uptend Under Pressure. Reducing exposure to stocks breaking below their 21- or 50-DMA on higher volume is important.

Key News