Nifty, +0.02%; Sensex, -0.03%; Nifty Midcap, +0.4%; Nifty Smallcap, +0.6%; Model Portfolio, +0.7%
Market Pulse: Confirmed Uptrend
Distribution Day Count: Four
Today, Nifty made a gap up opening of about 75 points and traded in a narrow range for the first half of the session. In the second half, the index came under selling pressure and fell sharply toward the day’s low of 15,645. However, some buying interest helped the index closed flat for the day. Volume was lower compared to that in yesterday’s session. In fact, volume has been consistently lowering in the previous five consecutive sessions.
On the sectoral front, Nifty Realty(+3.6%) was the highest gainer for the day while Nifty Bank and Nifty PVT bank advanced 0.4% each. Nifty IT, FMCG, and Metal closed 0.2–0.5% lower. The broader market outperformed the benchmark indices. The advance-decline ratio was in favor of advancers. Out of 2,317 stocks traded, 1,179 stocks advanced, 797 stocks declined, and the remaining closed flat.
The distribution day count is currently at four. Nifty remained below its 21-DMA. However, the volume was lower. If the index falls further and adds a distribution day, 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.