Nifty opened 80 points higher in yesterday’s session on strong global cues. It consolidated its gains in the first half and witnessed further buying interest in the second half, closing near the day’s high and holding a decent gain. However, volume remained on the lower side, which is a red flag. The broader market indices outperformed the major index. Nifty Midcap gained 0.9% and Smallcap advanced 1.2%. Barring Nifty Pharma, all sectors closed in the green. Nifty Realty (+3.8%) was the top gainer for the day, followed by Nifty Media and Nifty Fin Service, which advanced 1.6% and 1.0%, respectively. Similarly, Nifty Bank, FMCG, Metal, and PVT Bank closed 0.5–0.9% higher.
Nifty continues to make fresh highs and is currently trading 3.8% and 5.8% above its 21- and 50-DMA, respectively. We would like the index to hold its 21-DMA and/or 50-DMA and trade above that. Without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions. 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.
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