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Market Status Changed to a Rally Attempt; Maruti Suzuki Hikes Prices of Select Models

April 16 2021
Weekly Action

Nifty, -1.5%; Sensex, -1.5%; Nifty Midcap, -3.0%; Nifty Smallcap, -3.5%; Model Portfolio, -1.3%.

Market Pulse Rally Attempt

Weekly Market Review

Nifty started the week on a negative note as it breached its 50-DMA on Monday. It tested its 100-DMA and found support in the first two trading sessions of the week. During the holiday-truncated trading week, Nifty was highly volatile and pared most of its Monday losses in the next three sessions.

Today, Nifty opened on a flat note and rose over 120 points intraday. But in the last hour, it booked profits and closed below its 21-DMA. The advance-decline ratio was in favor of advancers. Out of 2,249 stocks, 1,105 advanced, 768 declined, and the rest remained unchanged.

On a weekly basis, barring Nifty Pharma (+1.8%), all the sectoral indices closed in the red. Nifty PSU Bank (-6.9%) declined the most, followed by Realty (-5.7%) and Media (-5.3%).

Market Status Overview: Market Status Changed to a Rally Attempt

We are changing the market status to a Rally Attempt as Tuesday was a blue rally day (Day 1), and Nifty managed to stay above its recent low for two consecutive sessions.

From here, we would prefer to see a [follow-through day] before shifting the market to a Confirmed Uptrend. A follow-through day is a solid up session, generally with a 1.5% or higher gain, with volume higher than the previous day. Should this occur, the focus will be on ideas breaking out of early-stage base patterns and showing the best relative strength with good accumulation. On the flip side, Nifty is still below its 50-DMA. If it breaches its recent low of 14,248, the market will be moved back to a Downtrend.

What do you think? Please email us any questions or comments.

Disclaimer: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.For more information, see our Legal disclosures here.

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