Nifty, +0.9%; Sensex, +0.7%; Nifty Midcap, +0.4%; Nifty Smallcap, +0.7%; Model Portfolio, +1.5%
Market Pulse Confirmed Uptrend
Distribution Day Count: Zero
Nifty, after a gap-up opening, witnessed profit booking and traded toward the day's low of 12,571 in the first half of the trading session. However, in the second half, it staged a sharp reversal and closed near 12,750 holding robust gains. Volume was higher than the previous day. Nifty has now extended gain for the eighth consecutive session and is currently trading 6.6% and 9.4% above its 21- and 50-DMA, respectively. In the broader market, both Midcap and Smallcap continue to lag behind the general market and closed 0.4% and 0.7%, respectively.
On the sectoral front, barring Nifty Media (-0.3%) and Nifty PSU bank (-0.5%), all other sectors closed in the green. Metal and Pharma stocks led the rally, resulting in Nifty Metal and Nifty Pharma gained the most for the day. Both the sectoral indices advanced 3.5% and 3.6%, respectively. Market breadth remained in favor of advancers. Of 2,230 stocks traded, 1,001 advanced, 820 declined, and the rest remained unchanged.
Currently, we are in a Confirmed Uptrend and are open to adding new positions coming out of proper base formation. We will look for leadership among some good stocks to push the market up. On the flip side, tracking distribution days is crucial. Accumulation of distribution days can halt the uptrend.