Metal and Realty Stocks Outperform; JSPL’s Production Jumps 20% y/y in Q1 FY22

Nifty, +0.4%; Sensex, +0.4%; Nifty Midcap, +0.7%; Nifty Smallcap, +0.6%; Model Portfolio, +0.5%

Market Pulse: Confirmed Uptrend

Distribution Day Count: Four

Today, Nifty had a flat opening and hit the day’s low in the first hour of trading. However, it gradually recovered from there to close near the day’s high, retaining decent gains. Volume was lower than in the previous session. The broader market outperformed the benchmark indices. The Midcap and Smallcap indices were up 0.7% and 0.6%, respectively.

On the sectoral front, barring Nifty Auto (-0.1%) and Media (-0.2%), all indices closed in the green. Nifty Metal (+2.2%) was the top gainer, while Nifty Realty and Finservice gained around 2% and 0.6%, respectively. The advance-decline ratio was in favor of advancers Out of 2,263 stocks traded, 1,066 stocks advanced, 861 stocks declined, and the remaining closed flat.

The distribution day count is currently elevated to four. If the index falls further, adds a couple of distribution days, and breaches its key moving averages, 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.

Key News