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Nifty Escapes Distribution Day; PSU Bank Stocks Outperform

February 17 2021
Today’s Action

Nifty, -0.7%; Sensex, -0.8%; Nifty Midcap, +0.3%; Nifty Smallcap, +0.03%; Model Portfolio, -0.4%

Market Pulse Confirmed Uptrend

Distribution Day Count: Five

Nifty opened lower and continued to witness profit booking and traded volatile to close near 15,200. Though the index fell more than 0.2%, it escaped a distribution day as volume was lower than the previous session. The broader market outperformed. Midcap was up 0.3%, while Smallcap ended 0.03% higher.

On the sectoral front, a mixed reaction was observed. Nifty IT (-1.5%) continued to decline along with Nifty Pharma (-1.7%). Nifty PSU bank was the major gainer, up 5.9%. Advance-decline ratio was skewed toward decliners. Out of 2,233 stocks, 922 advanced, 977 declined, and the remaining were unchanged.

Nifty made a new high on February 3 and moved above the previous rally high of 14,754. Hence, we changed the market status to a Confirmed Uptrend. However, the distribution day count remains elevated at five. Nifty is more than 4.5% above its 21-DMA. If 21-DMA is breached, we may downgrade the status to an Uptrend Under Pressure. Without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions.


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