Nifty, -0.9%; Sensex, -0.8%; Nifty Midcap, +0.5%; Nifty Smallcap, +2.2%; Model Portfolio, +3.4%.
Market Pulse: Confirmed Uptrend
Distribution Day Count: Four
Weekly Market Review
Nifty traded in the range of 15,636–15,915 this week. It was volatile, but the range was narrow and volume was low. It closed lower in four out of five sessions. One distribution day was added on Tuesday. Nifty breached its 21-DMA on Wednesday, but traded very close to it and did not fall further. The trend during all sessions was similar during the week. Nifty opened either flat or positive and shed its gains before the session ended. However, there was some last-hour buying today, which helped Nifty close in the positive zone. On a weekly basis, barring Nifty Pharma (+3.3%) and FMCG (+0.6%), all sectoral indices closed lower. Nifty Bank, Metal, and Financial Services closed 1.5–1.8% lower.
Today, barring Nifty Metal (-1.6%), all sectoral indices closed flat or positive. Nifty Bank, Financial Services, Pharma, and Realty closed 0.2–0.6% higher, while Nifty Auto, FMCG, and IT closed flat. The broader market outperformed the benchmark indices. Today, the advance-decline ratio was in favor of advancers. Of the 2,285 stocks traded, 1,134 advanced, 775 declined, and the rest remained unchanged.
The distribution day count is currently elevated to four. If the index falls further, adds a couple of distribution days, and breaches its 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 out of sound bases with RS line at or near new highs while reducing exposure to stocks breaking below key support levels.