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Nifty Bounces From its 21-DMA; Sterlite Technologies Share Surge

August 17 2020
Today’s Action
Nifty, +0.6%; Sensex, +0.5%; Nifty Midcap, +0.4%; Nifty Smallcap, +0.8%; Model Portfolio, +0.2%
Market Pulse : Confirmed Uptrend
After a positive opening, Nifty quickly succumbed to selling pressure and made an intraday low of 11,144 within the first 30 minutes of trading. However, the index found support at its 21-DMA (11,175) and traded above it for most part of the session. Last hour buying helped the index to close near the day's high. 80% of the Nifty50 stocks closed in the green, led by NTPC (+7.8%) and Zee Entertainment Ents (+5.5%).
Barring Nifty PSU Bank (-0.8%) and Pharma (-0.5%), all the sectoral indices closed in the green. Nifty Media led the rally with a gain of 3.0% followed by Nifty Auto (+2.5%) and Metal (+2.4%). Market breadth was skewed toward advancers. Of 2,198 stocks traded, 1,116 advanced, 714 declined, and the remaining traded flat.
The Indian market remains in a Confirmed Uptrend. We would like to see fresh names flexing their muscles for a sustainable rally. Finding favorable entries into powerful breakouts may be the best use for new money in the current market. However, things can change quickly due to high volatility. We are operating in an uncertain environment where information is distributed unevenly, wherein outside forces, either intentionally or unintentionally, affect prices across various time frames. We will continue to monitor the behavior of the market and keep an open mind as to how it unfolds.
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