Nifty, +0.04%; Sensex, -0.1%; Nifty Midcap, +0.5%; Nifty Smallcap, -0.01%; Model Portfolio, +0.1%
Market Pulse Confirmed Uptrend
Distribution Day Count: Two
Nifty opened on a flat-to-positive note today and quickly turned negative. It moved in a narrow range in the first half of the session. In the second half, it was highly volatile, selling pressure was followed by buying, which helped Nifty close in the green. 72% of the Nifty50 stocks advanced today, led by Gail (India) (Nse) (+5.0%) and Oil & Natural Gas (+4.1%).
Barring financial-related sectoral indices, all the indices closed in the green. Nifty Realty (+2.9%) and Metal (+2.6%) were the major advancers. Market breadth was inclined toward advancers. Out of 2,224 stocks traded, 1,093 stocks advanced, 749 declined, and the remaining stocks unchanged.
Though we are in a Confirmed Uptrend, we need to be prudent and cautious while adding fresh positions, as Nifty is currently trading ~22% above its 200-DMA, which is rare. We expect some pullback in the market. However, a small pullback/consolidation is a constructive sign if Nifty holds its 21-DMA. It is advised to closely review the existing positions and book partial profits in stocks that are extended from their moving averages. We will look for leadership among some good stocks to push the market up. On the flip side, tracking distribution days is crucial. Accumulation of distribution days can halt the uptrend.