Nifty, +0.4%; Sensex, +0.4%; Nifty Midcap, +0.1%; Nifty Smallcap, +1.8%; Model Portfolio, +0.6%
Market Pulse Confirmed Uptrend
Distribution Day Count: Five
Nifty, after a gap-up opening, traded with high volatility in the first hour of the trading session. However, as the session progressed, it traded in the narrow range to close near the day's high holding decent gains. Volume continued to decline for the third consecutive session. In the broader market, though Midcap underperformed with a gain of 0.1%, Smallcap indices showed solid outperformance with a gain of 1.8%. Also, one distribution day expired today, taking the count to five.
On the sectoral front, mixed reaction was observed. Nifty FMCG and Nifty Metal each gained 0.8%. On the flip side, Nifty PSU Bank was down 1.3% and Nifty Auto declined 0.5%. Advance-decline ratio was skewed toward decliners. Out of 2,231 stocks, 1,123 advanced, 780 declined, and the remaining were unchanged.
On last Wednesday, Nifty made a new high and moved above the previous rally high of 14,754. Hence, we changed the market status to a Confirmed Uptrend. However, the distribution day count remains elevated at six. Nifty is more than 4.3% above its 21-DMA. If the 21-DMA is breached, we may downgrade the status to an Uptrend Under Pressure. Without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions.