Nifty, +0.3%; Sensex, +0.3%; Nifty Midcap, +0.2%; Nifty Smallcap, +0.5%; Model Portfolio, +0%
Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
Today, Nifty had a flat opening and traded toward the day’s low of 15,764 in the first hour. However, it staged a reversal from there and closed above 15,850, holding minor gains. The index is currently trading 0.5% above its 21-DMA. Volume was slightly lower compared to that in yesterday’s session. In the broader market, the Smallcap index was up 0.5%, while the Midcap index advanced 0.2%.
On the sectoral front, mixed reactions were observed. Nifty IT (+3.2%) was the day’s highest gainer followed by Nifty Pharma and Nifty Media, which were up 0.3% and 0.2%, respectively. The advance-decline ratio was in favor of advancers. Out of 2,272 stocks traded, 1,013 stocks advanced, 917 stocks declined, and the remaining closed flat.
Nifty is hovering around its 21-DMA. It is crucial for the index to hold and trade above this level. Also, one distribution day expired today taking the distribution day count to three. If the index falls further and adds more 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.