Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
Global stock markets: Dow30, -0.4%; S&P 500, +0.2%; Nasdaq, +1%; Kospi, -0.4%; Nikkei, -0.9%; Shanghai Composite, -0.6%
Yesterday, Nifty gapped up to open at a new all-time high. However, it failed to hold the opening gains and dropped more than 100 points from the high, closing 0.3% lower. Yesterday’s action was not considered a distribution day as the volume was lower compared to Friday’s session.
The broader market outperformed the benchmark indices. There was mixed action on the sectoral front. Nifty Metal, Pharma, and PSU Bank closed 1.2–2.5% higher. On the flip side, Nifty IT, Media, and Financial Services closed 0.3–0.7% lower.
Nifty is only a few points below its all-time high and has near-term support near its rising 21-DMA. We will continue to monitor the action for signs of health or crack in the market and leaders. The distribution day count currently stands at three. 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.
Hdfc Life Insurance Co: Standard Life (Mauritius Holdings) announced it would sell 7 crore shares, which is about 3.46% of the company’s total shares, via block deals today.
Bajaj Healthcare Ltd moved the patent office to make the COVID-19 drug Baricitinib, blocked by Eli Lilly.
Graphite India (Nse) posted Q4 FY21 results. It reported PAT of Rs 64 crore compared to a loss of Rs 7 crore for Q4 FY20. Revenue declined to Rs 565 crore from Rs 602 crore in Q4 FY20.
Blue Dot List: