Nifty Adds Distribution Day; Dabur’s Q1 Results Beat Estimates

Nifty, -0.9%; Sensex, -0.9%; Nifty Midcap, -0.8%; Nifty Smallcap, -1%; Model Portfolio, -1.2%

Market Pulse Confirmed Uptrend

Today, Nifty gapped up 50 points and continued its positive momentum in the first hour of trading. However, Nifty staged a downside reversal and dropped more than 200 points from its intraday high. It adds distribution day as the volume was higher compared with yesterday’s session. This is the second consecutive day when Nifty opened higher and slipped in the red, closing near the day’s low. The selling was broad based. Nifty Midcap and Smallcap also closed with a loss of 1%. The selling was concentrated among Banks and Financial stocks. On the flip side, Nifty Pharma (+3%) continues to outperform and support the indices. Nifty IT closed 0.7% higher. Market breadth was skewed toward decliners. Of 2,169 stocks traded, 689 advanced, 1,141 declined, and the remaining traded flat.

The Indian market remains in a Confirmed Uptrend. However, things can change quickly due to high volatility. We are operating in an uncertain environment where information is distributed unevenly, and it is an environment where outside forces, either intentionally or unintentionally, affect prices across various time frames. We will continue to monitor the behavior of leading stocks and keep an open mind as to how it unfolds. We will wait for solid entry points before buying.