Midcap and Small Cap Stocks Outperform; Dhampur Sugar Mills to Expand Distillery Capacity

Nifty, +1%; Sensex, +1%; Nifty Midcap, +2.5%; Nifty Smallcap, +2.7%; Model Portfolio, +2.2%

Market Pulse Confirmed Uptrend

Distribution Day Count: Four

After a flat opening, Nifty witnessed significant buying interest and remained bullish throughout the day. It formed higher highs on the hourly chart and closed above 13,600, holding significant gains. Volume was lower than the previous session. The broader market posted outperformance as compared with the general market. Midcap closed 2.5% higher, while smallcap closed with a gain of 2.7%.

On the sectoral front, all the sectors closed in the green for the second consecutive day. Nifty Realty (+4%) advanced the most, followed by Nifty Media and IT, which advanced 3.3% and 2.5%, respectively. Nifty Metal and Nifty Pharma continued the gaining momentum and closed 1.8% and 1.7% higher, respectively. Further, Nifty Auto, Bank, FMCG, and PVT Bank were up in the range of 0.5–1.5%. Market breadth was skewed toward advancers. Of 1,997 stocks traded, 1,629 stocks advanced, 318 declined, and the remaining stocks were unchanged.

Looking ahead, we would like the index to hold its 21-DMA and trade above it. It is advised to closely review the existing positions and book profits in stocks that are extended from their moving averages and showing technical weakness. Also, tracking distribution days is crucial. If the distribution day is elevated further, it can halt the uptrend.