Nifty, -0.1%; Sensex, -0.2%; Nifty Midcap, +1.45%; Nifty Smallcap, +1.4%; Model Portfolio, -0.1%
Market Pulse Confirmed Uptrend
Distribution Day Count: Three
Nifty, after a gap up opening and making a new high, pared the opening gains and gradually slipped more than 100 points during the day but traded in positive territory. Due to last hour profit booking, Nifty closed briefly in the red. Volume was lower than the previous session. There was strong momentum in the broader market with Nifty Midcap and Smallcap closing 1.4% higher.
It was a mixed reaction on the sectoral front. Nifty Metal (+3.5%) was the top gainer, followed by Realty (+1.2%). Nifty Bank, Financial Services, and Auto closed 0.4–0.6% higher. On the flip side, Nifty FMCG, IT, and Pharma closed 0.4–0.8% lower. Market breadth was skewed toward advancers. Of 2,219 stocks traded, 1,175 advanced, 718 declined, and the remaining were unchanged.
With leadership broadening and indices above relevant intermediate term moving averages, we will continue to look for leadership-quality growth names to form entry points. If a pullback/consolidation happens, it will be crucial for Nifty to hold its 21-DMA. It is advised to closely review the existing positions and book profits in stocks that are extended from their moving averages and showing technical weakness. Also, tracking distribution days is crucial as rise in distribution days can halt the uptrend.