Nifty Closes at Record High; Financial Related Indices Surge

Today’s Action

Nifty, +1.0%; Sensex, +1.2%; Nifty Midcap, +1.3%; Nifty Smallcap, +0.4%; Model Portfolio, +0.9%

Market Pulse Confirmed Uptrend

Distribution Day Count: Five

Nifty opened at a record high of 15,270 and traded in a narrow range around 15,300 throughout the session. Last hour buying helped the index close near the day's high, holding decent gains. Volume was lower than the previous session. In the broader market, Midcap was up 1.3%, Smallcap was up 0.4%, underperforming the benchmark index.

On the sectoral front, mixed reaction was observed. Financial-related indices advanced the most followed by Nifty Realty (+1.5%). On the flip side, Nifty Media, IT, Metal, and Pharma declined 0.3-0.5%. Advance-decline ratio was skewed toward decliners. Out of 2,253 stocks, 845 advanced, 1,074 declined, and the remaining were unchanged.

Nifty made a new high on February 3 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 five. Nifty is more than 4.8% above its 21-DMA. If 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.