Nifty Breaches its 21-DMA, Extends its Losses

Nifty, -2.0%; Sensex, -2.3%; Nifty Midcap, -1.3%; Nifty Smallcap, -1.2%; Model Portfolio, -0.3%

Market Pulse Confirmed Uptrend

Distribution Day Count: Five

Nifty opened slightly higher but faced rejection around 15,000 and continued its downtrend through the session. The index extended the loss for the fifth consecutive session. Today’s volume was lower than yesterday’s, hence the session escaped distribution.

Barring Nifty Metal (+1.6%), all the sectoral indices closed lower. Nifty Media (-3.4%) was the major decliner. All the other sectoral indices closed more than 1.3% lower. Advance-decline ratio was skewed toward decliners. Out of 2,266 stocks, 561 advanced, 1,388 declined, and the remaining were unchanged.

Today one distribution day (15/1/2021) expired due to ageing. The distribution day count decreased to five. Even though Nifty breached its 21-DMA, the volume was lower. We may downgrade the status to an Uptrend Under Pressure if it falls on higher volume. Without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions.