Nifty Advances 7.6% in July; SBI Q1 Results Beat Estimates

Nifty, -1.1%; Sensex, -1.4%; Nifty Midcap, -0.4%; Nifty Smallcap, +0.4%; Model Portfolio, +1.2%.

Market Pulse Confirmed Uptrend

Weekly Market Review

Nifty breaks its six-week winning streak and closed in negative territory in four out of the five sessions. It added one distribution day during the week, taking the count to two. The trend of Nifty opening higher and slipping in the red to close in the lower half during the week was a red flag. On the flip side, only one distribution day was added and an additional follow-through day was observed on Wednesday. Nifty traded in the range of 11,090–11,340 and above its key moving averages. On the weekly front, there was mixed action among sectoral indices. The gainers gained big. Nifty Pharma and IT closed 9% and 4.5% higher. On the flip side, Nifty Bank, Financial Services, Energy, and Media closed 4–5% lower. Nifty advanced 7.6% during July. If Nifty consolidates above its upward trending 21-DMA (10,937) with thin distribution day count, it is constructive.

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.