Nifty Breaches its 50-DMA, Adds a Distribution Day; Market Status Changed to an Uptrend Under Pressure

Nifty, -1.3%; Sensex, -1.1%; Nifty Midcap, -2.5%; Nifty Smallcap, -2.2%; Model Portfolio, -2.6%

Market Pulse Uptend Under Pressure

Distribution Day Count : Five

Nifty started the session on a slightly positive note and traded sideways with volatility in the first half of the trading session. Post noon, the trend reversed as it breached its day’s low. It breached its 50-DMA  (14,728) for the first time since January 29. Today’s session qualified as a distribution day as the volume was higher compared with the previous session. The broader market underperformed benchmark indices. Nifty Midcap and Smallcap closed 2.5% and 2.2% lower, respectively. The advance-decline ratio was in favor of decliners. Of 2,234 stocks traded, 377 advanced, 1,537 declined, and the rest remained unchanged. All the sectoral indices closed lower. Nifty PSU Bank (-3.8%) declined the most followed by Media (-2.98%) and Realty (-2.96%).

Market Status Overview

- We are downgrading the market status to an Uptend Under Pressure . Nifty continues to remain under selling pressure for four consecutive sessions with a breach of 21-DMA on Monday and briefly undercutting its 50-DMA today. Currently, the Distribution Day Count stands at five.

- We will change the status to a Downtrend, if more distribution days are added or if Nifty fails to reclaim its 50-DMA and market leaders show signs of deterioration in their price actions. On the flip side, the status will be back to a Confirmed Uptrend if Nifty retakes 15,431 level (high during the recent rally).