Nifty Extends Gain for the Sixth Consecutive Session; Financial and Metal Stocks Shine

Today’s Action

Nifty, +0.5%; Sensex, +0.6%; Nifty Midcap, -0.3%; Nifty Smallcap, +0.4%; Model Portfolio, +0.2%

Market Pulse Confirmed Uptrend

Nifty made a gap-up opening, taking cues from global markets. However, as the session progressed, it traded sideways in a narrow range and closed near the day’s low holding meaningful gains. Volume was higher compared with yesterday’s session. Nifty continues to close in the green for six consecutive sessions and is currently trading 2.4% above its rising 21-DMA. Broader markets took a breather today. Nifty Midcap was down 0.3%, while Smallcap closed 0.4% higher.

On the sectoral front, mixed results were observed. Nifty Media led the rally with a gain of 2% followed by Nifty Pvt Bank which was up 1.7%. On the flip side, Nifty Pharma staged a reversal and declined 1.4% whereas Nifty IT and Realty were down 0.6% each.  Market breadth continues to remain skewed toward advancers. Of 2,179 stocks traded, 1,052 advanced, 798  declined, and the remaining traded flat.

The Indian market remains in a Confirmed Uptrend. We would like to see fresh names flexing their muscles for a sustainable rally. Finding favorable entries into powerful breakouts may be the best use for new money in the current market. However, things can change quickly due to high volatility. We are operating in an uncertain environment where information is distributed unevenly, wherein outside forces, either intentionally or unintentionally, affect prices across various time frames. We will continue to monitor the behavior of the market and keep an open mind as to how it unfolds.

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