Nifty Succumbs to Profit Booking Near Highs; PSU Banks Top Gainers

Weekly Action

Nifty, -1.2%; Sensex, -1.3%; Nifty Midcap, +0.9%; Nifty Smallcap, +0.6%; Model Portfolio, +0.8%.

Market Pulse: Confirmed Uptrend

Distribution Day Count: Six

Weekly Market Review

Nifty made a new all-time high of 15,431 on Tuesday. However, it succumbed to profit booking near highs and was down in the next three consecutive sessions of the week. Today, Nifty opened on a negative note and turned positive in the first hour of the session. Profit booking was observed since then as it lost over 250 points to breach 14,900. Today’s session escaped distribution day as the fall took place on volume lower than yesterday’s.

Nifty PSU Bank (+10.7%) was the top gainer for the week, followed by Energy (+5.2%) and Metal (+1.9%). On the flip side, Nifty Pharma (-3.4%) was the major decliner, followed by Auto (-3.4%). Today, the advance-decline ratio was in favor of decliners. Of the 2,234 stocks traded, 716 stocks advanced, 1,176 stocks declined, and the remaining stocks were unchanged.

Nifty made a new high on February 3 and moved above the previous rally high of 14,754. Hence, we changed the market status to a Confirmed Uptrend. However, the distribution day count remains elevated at six. Nifty is more than 1.7% above its 21-DMA. If 21-DMA is breached, we may downgrade the status to an Uptrend Under Pressure. Without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions.