Nifty, +0.4%; Sensex, +0.4%; Nifty Midcap, +0.8%; Nifty Smallcap, +0.7%; Model Portfolio, +0.3%
Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
Today, Nifty gapped lower by over 150 points. However, it gradually recovered from the low and turned positive in the second half. The broader market also staged an upside reversal after opening lower. On the sectoral front, Nifty Bank recovered more than 900 points from the low and closed 0.9% higher. Nifty PSU Bank(+4.1%) and Realty (+2.3%) were the top gainers. On the flip side, Nifty IT and Auto closed in the red. The advance-decline ratio was in favor of advancers, as out of 2,331 stocks traded, 1,223 stocks advanced, 738 stocks declined, and the remaining closed flat.
The distribution day count currently stands at three. 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. Focus on quality ideas emerging out of sound bases with RS line at or near new highs while reducing exposure to stocks breaking below key support levels. We will continue to monitor the action for signs of health or crack in the market and leaders.