Nifty, +0.4%; Sensex, +0.6%; Nifty Midcap, -0.1%; Nifty Smallcap, -0.02%; Model Portfolio, +0.2%
Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
Nifty opened at a record high above 13,900 but witnessed profit booking and traded toward the day's low of 13,860 in the initial two hours of the session. However, it posted a smart recovery of about 70 points off lows during the day and closed holding decent gains. Volume was higher than the previous session. The broader market underperformed compared with the general market. Midcap closed 0.1% lower, while smallcap closed flat for the day.
On the sectoral front, mixed reaction was observed. Nifty Pvt Bank (+1.6%) advanced the most, followed by Nifty Bank and Fin Service, which advanced 1.4% and 1.0%, respectively. On the flip side, Nifty Media (-1.5%) and Nifty Metal (-1.1%) were the top two decliners. Market breadth was skewed toward decliners. Of 2,247 stocks traded, 942 advanced, 951 declined, and the remaining were unchanged.
With leadership broadening and indices above relevant intermediate term moving averages, we will continue to look for leadership-quality growth names to form entry points. If a pullback/consolidation happens, it will be crucial for Nifty to hold its 21-DMA. It is advised to closely review the existing positions and book profits in stocks that are extended from their moving averages and showing technical weakness. Also, tracking distribution days is crucial as rise in distribution days can halt the uptrend.