Nifty Closer to Reclaim its 21-DMA; Adani Ports Q2 Results Beats Consensus On All Fronts

Nifty, +1.2%; Sensex, +1.3%; Nifty Midcap, +0.7%; Nifty Smallcap, +0.1%; Model Portfolio, +0.7%

Market Pulse Rally Attempt

Nifty gapped up 65 points, taking cues from global markets. Post that, it traded in the narrow range and closed near the day’s high, holding solid gains. Volume was higher compared with the last session.Nifty regained 21-DMA intraday but closed 0.05% below it. It is crucial for the index to decisively reclaim its 21-DMA and trade above that.

On the sectoral front, barring Nifty Realty and Nifty Media, all other sectors closed in the green. Nifty Bank, Nifty Fin Service, and Nifty Pvt Bank continued to close higher in the range of 3.1–3.2%. Similarly, Nifty Metal, Pharma, and Auto closed higher in the range of 1.5–2.5%. Of 2,213 stocks traded, 995 advanced, 831 declined, and the rest remained unchanged.

Looking forward, we would like Nifty to reclaim its 21-DMA. If it fails to reclaim the 21-DMA, 50-DMA can act as strong support. We will continue to monitor general conditions and the behavior of leading stocks, looking for evidence that a real move is commencing. During this time, one should look for stocks with quality fundamentals, RS line trending higher, and breaking out from consolidation areas.