Nifty, -0.2%; Sensex, -0.2%; Nifty Midcap, -0.3%; Nifty Smallcap, 0.0%; Model Portfolio, 0.0%
Market Pulse Downtrend
Nifty, after a gap-up opening, managed to hold it in the first half of the session. Selling pressure intensified in the second half, with Nifty dropping more than 200 points from its intraday high. However, there was a good recovery in the last hour, helping Nifty close 100 points off lows. Volume was higher compared to the previous session. Yesterday, we moved the market to a Downtrend as Nifty breached its 50-DMA, distribution day count remained elevated at seven, and many leading stocks failed to hold logical support levels.
On the sectoral front, Nifty Realty (+0.8%) was the top performer. Nifty Bank, Financial Services, FMCG, and Auto closed flat or with small gains. Nifty Pharma (-1.6%) and PSU Banks (-1.4%) were the top decliners. Advance-decline ratio was leaned toward decliners. Out of 2,204 stocks traded, 854 advanced, 986 declined, and the rest remained unchanged.
Under this market conjuncture, investors should remain on the sidelines and avoid taking any fresh exposure. Further, investors already with positions open should trim their market exposure, and raise cash if possible. They should wait for the market to show credible signs of recovery and meanwhile, can observe the stocks which are showing resilience under falling market scenarios. Looking forward, we will shift the market to a Rally Attempt if Nifty establishes a bottom and stays above today’s low (11,025) for three straight sessions. From there, we would prefer to see a follow-through day before shifting the market back to a Confirmed Uptrend. Should this occur, the focus will be on ideas that show the best relative strength with good accumulation.