Nifty Closes Above 16,000; Titan and HDFC Lead Gains

Nifty, +1.55%; Sensex, +1.65%; Nifty Midcap, +0.05%; Nifty Smallcap, -0.2%; Model Portfolio, -0.4%

Market Pulse: Confirmed Uptrend

Distribution Day Count: Four

Today, Nifty started the session on a positive note, trended higher as the day wore on, and crossed the 16,000 mark. It further extended gains and closed above 16,100. As the gain was more than 1.5% and volume higher, we would consider it an additional follow-through day. However, the broader market underperformed. Nifty Midcap closed flat, while Smallcap closed in the red. Among Nifty50 stocks, only six closed lower. Titan Company (+3.3%) and Housing Development Fin. (+3.6%) were the top gainers.

On the sectoral front, barring Nifty Metal and Media, all others closed in the green. Nifty Bank, Financial Services, Auto, FMCG, and IT closed 1.2–1.7% higher. Looking at strong action on Nifty, the advance-decline ratio looks strange and slightly favored the decliners. Of 2,005 stocks traded, 970 stocks advanced, 986 stocks declined, and the remaining closed flat.

Currently, the distribution day count stands at four. Nifty is trading at an all-time high. The additional follow-through action indicates strength, but the broader market action was not very constructive. We will continue to follow the action of leaders and look for constructive behavior and potential entry points to develop. If the index adds a couple of distribution days, stages a reversal, and breaches key moving averages, we may change the market status to an Uptrend Under Pressure. We continue to recommend a selective approach to increasing risk. Focus on quality ideas emerging from sound bases with RS line at or near new highs while reducing exposure to stocks breaking below key support levels.