Nifty, -0.1%; Sensex, -0.2%; Nifty Midcap, +0.9%; Nifty Smallcap, -0.02%; Model Portfolio, +0.9%
Market Pulse Uptend Under Pressure
Distribution Day Count: Six
Nifty, after a flat opening, witnessed selling pressure and traded toward the day's low of 14,598. However, during the day, it staged a smart recovery of about 140 points off lows to close flat for the day. Volume was lower as against Friday’s session. In the broader market, Nifty midcap showed the outperformance with a gain of 0.9%, while smallcap closed flat for the day.
On the sectoral front, mixed performance was observed. Nifty Realty, FMCG, and IT were the top gainers, closing 1.5–3.0% higher. Metal and Pharma stocks also witnessed buying interest and gained more than 1% for the day. On the flip side, Financials drag. Nifty Bank was down 1.7%. The advance-decline ratio was in favor of advancers. Of 2,285 stocks traded, 1,065 advanced, 893 declined, and the rest remained unchanged.
Market Status Overview
- Thursday, we downgraded the market status to an Uptend Under Pressure as the distribution day count was elevated, Nifty breached its 21-DMA on last Monday, and briefly undercut its 50-DMA on Thursday. Currently, the distribution day count stands at six.
- We will change the status to a Downtrend, if one more distribution day is added or if Nifty fails to reclaim its 50-DMA and market leaders show signs of deterioration in their price actions.
Investors should consider booking profits in the stocks that have performed well and have advanced 20–25% from their ideal buy points. Even if the market undergoes a small correction, these stocks are more likely to consolidate and test their moving averages. Further, stocks slipping below their 50- and 200-DMA on above average volume should be sold. Consider exiting stocks that have declined 8% from your buy price.