Nifty, -0.3%; Sensex, -0.4%; Nifty Midcap, +0.5%; Nifty Smallcap, +0.4%; Model Portfolio, +1.2%
Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
Today, Nifty gapped up to open at a new all-time high. However, it failed to hold the opening gains and dropped more than 100 points from the high, closing 0.3% lower. As the volume was lower compared to Friday’s session, we will not consider it a distribution day. The broader market outperformed the benchmark indices. There was mixed action on the sectoral front. Nifty Metal, Pharma, and PSU Bank closed 1.2–2.5% higher. On the flip side, Nifty IT, Media, and Financial Services closed 0.3–0.7% lower. The advance-decline ratio was in favor of advancers, as out of 2,309 stocks traded, 1,084 stocks advanced, 898 stocks declined, and the remaining closed flat.
We maintain a positive view of the overall market as indices are at new highs, above all key moving averages, and distribution is low. We will continue to monitor the action for signs of health or crack in the market and leaders. If the index falls further, adds a distribution day, and breaches its key moving averages, we may change the market status to an Uptrend 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.