Nifty Fails to Hold Gains; Financial-Related Stocks Underperform

Posted Date: June 30 2021

Author: Rushit Sejpal

Article Image
Today’s Action
 

Nifty, -0.2%; Sensex, -0.1%; Nifty Midcap, +0.3%; Nifty Smallcap, +0.2%; Model Portfolio, +0.5%

Market Pulse: Confirmed Uptrend

Distribution Day Count: Four

Nifty opened briefly in the green and gained further as the session progressed. It made a high of 15,838 (close to yesterday’s high) and reversed more than 100 points from there to close in the red. The broader market also reversed its gains from the first half, but closed in the green. Nifty closed briefly below its 21-DMA. However, the volume was lower. On the sectoral front, only Nifty IT (+0.7%) closed higher. Nifty Auto, Bank, FMCG, Metal, Financial Services, and Pharma closed 0.1–0.6% lower. The advance-decline ratio was close to one, as out of 2,261 stocks traded, 960 stocks advanced, 960 stocks declined, and the remaining closed flat.

We recommend a selective, patient approach to adding risk. It is crucial to continue to monitor the action for signs of health or crack in the market and leaders. If the index falls further below its 21-DMA and adds a distribution day, we may change the market status to an Uptend Under Pressure. Focus on quality ideas emerging out of sound bases with RS line at or near new highs while reducing exposure to stocks breaking below key support levels.

Key News

What do you think? Please email us any questions or comments.

Disclaimer: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.For more information, see our Legal disclosures here.
Loading...