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Market Status Changed to Uptrend Under Pressure; Barring FMCG, All Sectoral Indices Decline

January 27 2021
Today’s Action

Nifty, -1.9%; Sensex, -1.9%; Nifty Midcap, -1.6%; Nifty Smallcap, +0.2%; Model Portfolio, -0.3%

Market Pulse Uptrend Under Pressure

Distribution Day Count: Five

After opening flat, Nifty quickly turned negative and the selling intensified as the session progressed. In the last four trading sessions, it declined 5.3% from it's all-time high of 14,753. It turned negative for the year. 76% of the Nifty50 stocks declined today. Tata Motors (-4.2%) and Tata Steel (-3.9%) were the major decliners.

Barring Nifty FMCG (+0.3%), all the sectoral indices closed in the red. Nifty Pvt Bank (-3.1%) and Fin Service (-2.8%) were the major decliners. Market breadth was skewed toward decliners. Of 2,211 stocks traded, 637 advanced, 1,233 declined, and the remaining were unchanged.

Today, Nifty fell more than 0.2% on volume higher than the previous session, qualified as a distribution day. As one distribution day expired today, the count is unchanged. We downgraded the market status to Uptrend Under Pressure as it breached its 21-DMA and due to elevated distribution. We will continue to monitor the market and look for signs of strength or weakness. It is advised to closely review the existing positions and book profits in stocks that are extended from their moving averages and/or showing technical weakness.


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