Nifty Closes Flat; IT Stocks Continue to Rally

Nifty, +0.03%; Sensex, +0.1%; Nifty Midcap, -0.5%; Nifty Smallcap, -0.2%; Model Portfolio, -0.3%

Market Pulse Rally Attempt

Nifty opened on a flat note and quickly lost over 40 points and made an intraday low of 11,888 within the first 10 minutes. Buying was seen at the lower levels among IT stocks and Nifty gained 100 points to make an intraday high of 11,988. In the end, Nifty managed to close in the green for the ninth consecutive session. 44% of Nifty50 stocks advanced today led by Hcl Technologies (Nse) (+4.0%) and Infosys (+2.3%). On the flip side, Cipla (-3.3%) and Titan Company (-2.2%) were the major decliners.

Barring Nifty IT (+1.4%) and Metal (+0.3%), all the sectoral indices closed in the red. Nifty Pharma (-1.9%) declined the most, followed by Nifty Media (-1.7%) and PSU Bank (-1.6%). The advance-decline ratio was in favor of decliners. Of 2,209 stocks traded, 814 declined, 1,019 advanced, and the rest remained unchanged.

Looking forward, we would prefer to see a follow-through day before shifting the market to a Confirmed Uptrend.  A follow-through day is a solid up session, generally a 1.5% or higher gain, with volume being higher than the previous day. Should this occur, the focus will be on ideas that show the best relative strength with good accumulation. Stocks that recover the quickest tend to lead the next run. On the flip side, if Nifty breaches its recent low of 10,790, the market will be moved back to a Downtrend.