Nifty Escapes Distribution; Mindtree Announces Q1 FY21 Results

Today’s Action

Nifty, -1.8%; Sensex, -1.8%; Nifty Midcap, -1.1%; Nifty Smallcap, -1.5%; Model Portfolio, -0.3%.

Market Pulse Confirmed Uptrend

Indian markets opened on a negative note, with Nifty starting the day 50 points lower and staying bearish throughout the day. Nifty escaped distribution as today’s decline was on a lower volume compared to the previous session. 92% of the Nifty50 stocks ended in the red. Indusind Bank (Nse) (-5.4%) and Axis Bank (-5.1%) were the biggest decliners. In the broader market, Nifty Midcap and Smallcap lost 1.1% and 1.5%, respectively.

Barring Nifty Pharma (+0.5%), all the sectoral indices closed lower. Nifty Pvt Bank (-3.3%) and other finance related sectors declined the most. Market breadth was inclined toward decliners. Of 2,157 stocks traded, 481 advanced, 1,368 declined, and the remaining traded flat.

The Indian market remains in a Confirmed Uptrend. However, things can change quickly due to high volatility. We will continue to monitor the behavior of leading stocks and keep an open mind as to how it unfolds. We will wait for solid entry points 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.

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