Nifty Declines 1% During the week; Metal Stocks Succumbed to Profit Booking
Weekly ActionNifty, -1.0%; Sensex, -1.0%; Nifty Midcap, -0.7%; Nifty Smallcap, +0.3%; Model Portfolio, +0%. Market Pulse: Confirmed Uptrend Distribution Day Count: Three Weekly Market Review After retaking its 50-DMA last week, Nifty breached that level this week. The next level of support at its 100-DMA is just 100 points below the closing price. Historically, 100-DMA has been a good support for Nifty. Today, it opened with a 50-point gain, but succumbed to profit booking and quickly turned negative. It was a volatile session as the day’s range was more than 150 points. On the sectoral front, Nifty PSU Bank (+3.7%) was the top gainer for the week, followed by Nifty Media (+2.4%). On the flip side, Nifty Metal (-4.6%) which rallied the most in the past few weeks, succumbed to profit booking during the week. Today, the advance-decline ratio was in favor of decliners. Of the 2,264 stocks traded, 777 advanced, 1,142 declined, and the rest remained unchanged. One distribution day was added during the week, increasing the count to three. Nifty trading below its 50-DMA is a cautious sign. We expect the Nifty to hold its 100-DMA. However, if it breaches its 100-DMA, it opens further downside. Continue to trim or avoid ideas lagging and/or breaking down below major moving averages. We would downgrade the market status to an Uptrend Under Pressure if Nifty breaches its 100-DMA and/or distribution day count increases. Key News
What do you think? Please email us any questions or comments.Disclaimer: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.For more information, see our Legal disclosures here.