Realty and Metal Stocks Rally; HG Infra Emerges L-1 Bidder from NHAI

Nifty, -0.2%; Sensex, -0.2%; Nifty Midcap, +1.3%; Nifty Smallcap, +1.2%; Model Portfolio, +1.6%.

Market Pulse: Confirmed Uptrend

Distribution Day Count: Four

Weekly Market Review

Nifty breached its 21-DMA on Thursday after reclaiming it on Monday. It was volatile during the week and the trading range has slightly widened. Due to lower volume, Nifty escaped two distribution days. Today, Nifty opened lower and turned positive for a brief moment.  It traded in a narrow range with intraday volatility.

On a weekly basis, Nifty Realty (+6.3%) advanced the most followed by Nifty Metal (+2.8%) and Media (+1.1%). Nifty Auto and PSU Bank closed 2.5–2.1% lower. Today, the advance-decline ratio was in favor of advancers. Of the 2,261 stocks traded, 1,077 advanced, 838 declined, and the rest remained unchanged.

The distribution day count is currently elevated to four. If the index falls further, adds a couple of distribution days, and breaches its key moving averages, we may change the market status to an Uptrend Under Pressure. We continue to recommend a selective approach to increasing risk. 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.