Market Pulse: Uptrend Under Pressure
Nifty50: Six Nifty Midcap100: Seven Nifty Smallcap100: Seven
Global Stock Markets: Dow 30, -0.03%; Nasdaq, +0.4%; S&P 500, +0.2%; Nikkei, +0.7%; Kospi, -0.5%; Shanghai Composite, -0.3%.
Yesterday, Nifty continued its positive momentum and made a high of 17,600. However, in the last hour, the index was under selling pressure and lost more than 200 points from its intraday high. Some heavy-weight stocks, like Infosys, Maruti, Reliance, and ITC, fell 1.5–2.5%, which pushed Nifty lower. On the flip side, Banks and other financial related stocks supported Nifty. The index escaped a distribution day as volume was a little less than that of Tuesday’s session. Action in the broader market was constructive in the first half, but came under selling pressure in the second half. However, Nifty Smallcap closed 0.6% higher.
On Monday, market status was changed to an Uptrend Under Pressure. We will change the status to a Downtrend if more distribution days are added or if Nifty fails to reclaim its 50-DMA and market leaders show signs of deterioration in their price actions. On the flip side, the status will be changed back to a Confirmed Uptrend if Nifty retakes the 18,604 level (the high during the recent rally). Proceed with caution. Stocks slipping below their 50- and 200-DMA on above average volume should be sold. Consider exiting stocks that have declined 8% from the buy price.
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