Nifty Edges towards 18,000; Nifty Realty Advances 21.2% for the Week

Nifty, +1.5%; Sensex, +1.8%; Nifty Midcap, +0.8%; Nifty Smallcap, +0.5%; Model Portfolio, +0.7%

Market Pulse: Confirmed Uptrend

Distribution Day Count: Two

Weekly Market Review

The markets remain bullish as Nifty closed higher for the fifth consecutive week, the longest streak in the year. On the weekly chart, the index has been making higher highs and higher lows which is a bullish sign. Today, it gapped up near 17,900 and made a new all-time high of 17,947, inching closer to 18,000. However, Nifty pared most of its gains and closed 0.2% higher. Of the 2,036 stocks traded, 713 advanced, 1,235 declined, and the rest remained unchanged.

On the sectoral front, Nifty PSU Bank (-4.4%), Metal (-3.3%) and Pharma (-0.5%) closed lower for the week. Nifty Realty (+21.2%) was the top gainer, followed by Nifty Media (+11.7%). Most of the indices are in a Rally. The following table indicates the market status of the various indices and their distribution day count.

The distribution day count currently stands at two. One is set to expire next week. Further, Nifty is now trading above all its key moving averages. We would like the index to continue to trade above its key moving averages. After such a sudden rally, one must also be prepared for some mild profit booking. In the process, if the index adds a couple of distribution days, stages a reversal, or breaches its key moving averages, we may change the market status to an Uptrend Under Pressure. Reducing exposure to stocks breaking below their 21- or 50-DMA on higher volume is important.