Nifty, +1.0%; Sensex, +1.0%; Nifty Midcap, +0.7%; Nifty Smallcap, +1.1%; Model Portfolio, +0.2%
Market Pulse Confirmed Uptrend
Distribution Day Count: One
Nifty opened above 13,000 for the first time. It traded range-bound and in the green through the session and ended on a strong note at a new all-time high. 76% of Nifty50 stocks advanced today, led by Adani Ports and Special Economic Zone (+4.6%) and Axis Bank (+4.0%).
All the sectoral indices closed in the green. Nifty Bank (+2.5%) advanced the most, followed by Pvt Bank (+2.3%) and Realty (+1.8%). Market breadth was in favor of advancers. Of 2,213 stocks traded, 1,111 advanced, 756 declined, and the rest remained unchanged.
We are in a Confirmed Uptrend but need to be prudent and cautious while adding fresh positions, as Nifty is currently trading ~20% above its 200-DMA, which is rare. We expect some pullback in the market. However, a small pullback/consolidation is a constructive sign if Nifty holds its 21-DMA. It is advised to closely review the existing positions and book partial profits in stocks that are extended from their moving averages. 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.