Nifty, +0.7%; Sensex, +0.5%; Nifty Midcap, +1.6%; Nifty Smallcap, +2.3%; Model Portfolio, +0.4%
Market Pulse Confirmed Uptrend
After a gap-up opening, Nifty continued to trade higher in the first hour but slipped more than 100 points from high. In the second half, Nifty rebounded sharply and made a high of 10,394. However, Nifty closed 80 points off high with a gain of 0.7%. Broader market indices outperformed benchmark indices. On the sectoral front, barring Nifty IT, all sectoral indices closed in the green. Nifty PSU Bank index closed 4% higher. Nifty Bank, Auto, Metal, and Pharma closed 1.5–2.5% higher. The advance-decline ratio was inclined toward advancers. Of 2,118 stocks traded, 1,324 advanced, 542 declined, and the remaining traded flat.
The Indian market remains in a Confirmed Uptrend. However, things can change quickly due to high volatility. So we will be watching the action closely with an eye to control risk and identify leadership; we will wait for solid entry points develop before buying. The O'Neil Methodology is a process to isolate leading stocks and buy them after a period of consolidation in order to be able to capitalize on an emerging trend. It is prudent to only invest in stocks that have strong fundamentals (i.e., good sales, earnings, margins, etc.) and that are breaking out of sound base structures on heavy volume.