Nifty, +0.01%; Sensex, -0.05%; Nifty Midcap, -0.6%; Nifty Smallcap, -0.2%; Model Portfolio, -0.7%
Market Pulse Confirmed Uptrend
Distribution Day Count: Three
Nifty gapped-up at a record high of 14,639 and made a new ATH of 14,653 intraday. However, it quickly succumbed to profit booking and lost around 220 points. Some buying was seen in the last 90 minutes as Nifty pared its losses to close flat. Broader market indices, Nifty Midcap (-0.6%) and Smallcap (-0.2%), closed lower. Among Nifty50 stocks, 52% of the stocks closed higher, led by Mahindra & Mahindra (+6.2%) and State Bank Of India (+4.9%).
Barring Nifty Pharma (-0.9%), Fin Service (-0.6%), and Realty (-0.3%) all the sectoral indices closed higher. Nifty PSU Bank (+3.3%) was the top gainer, followed by Auto (+0.9%). Market breadth was skewed toward decliners. Of 2,226 stocks traded, 643 advanced, 1,260 declined, and the remaining were unchanged.
With leadership broadening and indices above relevant intermediate term moving averages, we will continue to look for leadership-quality growth names to form entry points. If a pullback/consolidation happens, it will be crucial for Nifty to hold its 21-DMA. It is advised to closely review the existing positions and book profits in stocks that are extended from their moving averages and showing technical weakness. Also, tracking distribution days is crucial as rise in distribution days can halt the uptrend.