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Nifty Breaches its 50-DMA; Godrej Consumer Surges Post Stellar Q4 Results

Posted Date: May 12 2021
Today’s Action
 
Nifty, -1.0%; Sensex, -1.0%; Nifty Midcap, -0.8%; Nifty Smallcap, -0.6%; Model Portfolio, -0.9%
 
Market Pulse: Confirmed Uptrend
 
Distribution Day Count: Three
 
Nifty opened flat and quickly succumbed to selling pressure and lost over 120 points within the first two hours of trading. The index pared most of its losses as some buying was seen at the lower levels. But as the selling pressure overtook the index again, Nifty closed near the day’s low. The index escaped a distribution day as the volume was slightly lower than yesterday's.
 
There was a mixed action on the sectoral front. Nifty PSU Bank (+3.2%), Media (+0.7%), and Auto (+0.2%) closed higher. On the flipside, Nifty Metal (-2.9%) declined the most followed by financial-related stocks especially private banks. The advance-decline ratio was in favor of decliners. Of the 2,258 stocks traded, 910 advanced, 1,023 declined, and the rest remained unchanged.
 
On a technical perspective, Nifty breached its 50-DMA, which is not a good sign. Without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions. If the index falls further, adds a distribution day, and breaches its key moving averages, we may change the market status to an  Uptrend Under Pressure. Continue to trim or avoid ideas lagging and/or breaking down below major moving averages.
 
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