MarketsmithIndia Articles

Market Status Changed to Uptrend Under Pressure

Author: Rushit Sejpal

November 22 2021 | Reading Time: 2 Minutes
- We are downgrading the market status to an Uptrend Under Pressure. Nifty continues to remain under selling pressure for the fourth consecutive session. The index also breached its 50-DMA on Thursday. Today, selling intensified as Nifty was down over 1.9%. The distribution day count is currently at six.

- We will change the status to a Downtrend if more distribution days are added or if Nifty fails to reclaim the 50-DMA and market leaders show signs of deterioration in their price actions. On the flip side, the status will be changed back to a Confirmed Uptrend if Nifty retakes the 18,604 level (high during the recent rally).

- As the market condition has changed to an Uptrend Under Pressure, investors should proceed with caution. Unless a stock shows exceptional fundamental and technical strength, no new addition to the portfolio is advised.

- Investors should consider booking profits in the stocks that have performed well and have advanced 20–25% from their ideal buy points. Even if the market undergoes a small correction, these stocks are more likely to consolidate. Further, stocks slipping below their 50- and 200-DMA on above average volume should be sold. Consider exiting stocks that have declined 8% from your buy price.

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