Midcap and Smallcap Stocks Outperform; Govt. Announces New Stimulus Package Worth Rs 2.65 lakh crore

Nifty, -0.5%; Sensex, -0.5%; Nifty Midcap, +0.6%; Nifty Smallcap, +1.3%; Model Portfolio, +0.7%

Market Pulse Confirmed Uptrend

Distribution Day Count: Zero

Nifty made a gap down opening near 12,700. It remained volatile and traded in the narrow range to close 0.5% lower. Though the index declined more than 0.2%, volume was lower than the previous day. Thus, today’s session did not qualify for a distribution day. After gaining for the eighth consecutive session, Nifty closed in the red today and is currently trading 5.8% and 8.6% above its 21- and 50-DMA, respectively. In the broader market, both Midcap and Smallcap showed outperformance as compared with the general market and closed 0.6% and 1.3% higher, respectively.

On the sectoral front, mixed reactions were observed. Nifty FMCG (+1.3%) advanced the most followed by Nifty Realty and Nifty Media which advanced 0.7% each. On the flip side, the rally in financial stocks came to a halt as Nifty Bank, Nifty PSU bank, and Nifty PVT bank closed in the red. These three financial indices closed lower in the range of 1.8–2.3%. Market breadth remained in favor of advancers. Of 2,230 stocks traded, 1,115 advanced, 713 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.