Nifty, +0.9%; Sensex, +0.8%; Nifty Midcap, +1%; Nifty Smallcap, +0.6%; Model Portfolio, +0.4%
Market Pulse Confirmed Uptrend
Distribution Day Count: Three
Nifty opened in the green this morning and extended its gains as the day wore on, hitting a new all-time high. However, last hour selling pushed Nifty about 50 points off highs. Overall, volume was higher compared with the yesterday’s session. Tata Motors, Wipro, and Tech Mahindra were the top gainers among Nifty50 stocks. On the sectoral front, Nifty Auto, IT, and PSU Bank closed ~2% higher. Nifty Financial Services, Pharma, Realty, and FMCG closed almost flat. Market breadth was in favor of advancers. Of 2,215 stocks traded, 1,010 advanced, 885 declined, and the remaining were unchanged.
With indices above relevant intermediate-term moving averages, we will continue to look for leadership-quality growth names to form entry points. At the same time, the distribution day count is at three and many stocks have breached their 21- and/or 50-DMA. In this type of market, the message is to stay the course. We will continue to monitor the market and look for signs of strength or weakness. During pullback/consolidation, it will be crucial for Nifty to hold its 21-DMA. It is advised to closely review the existing positions and book profits in stocks that are extended from their moving averages and/or showing technical weakness. Also, tracking distribution days is crucial as a rise in distribution days can halt the uptrend.