Nifty, +1.8%; Sensex, +1.9%; Nifty Midcap, +1.8%; Nifty Smallcap, +1.9%; Model Portfolio, +1.8%.
Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
Weekly Market Review
Nifty continued its positive momentum and hit a new high during the week. It closed higher for the seventh consecutive week, which last happened in February - April 2019. During the week, it closed in the green in all trading sessions. The trading range has slightly narrowed down during the week, compared to the previous week’s range. On Friday, it opened in the green and quickly succumbed to profit-booking at the top and lost over 100 points. As the session progressed, it pared all the losses and closed in the green.
On the sectoral front, Nifty Realty (+3.9%) advanced the most. It was followed by Nifty Pharma (+3.2%) and Financials (+2.6%). On the flip side, PSU Bank (-3.4%) declined the most, followed by FMCG (-0.8%) and Auto (-0.2%). Today, the advance-decline ratio was inclined toward the decliners. Of the 2,233 stocks traded, 708 were advanced, 1,188 declined, and remaining were unchanged.
With leadership broadening and indices above relevant intermediate-term moving averages, we will continue to look for leadership-quality growth names to form entry points. After a strong rally, pullback/consolidation (if any) is a constructive sign if Nifty holds its 21-DMA. It is advised to closely review the existing positions and book partial profits in stocks that are extended from their moving averages. On the flip side, tracking distribution days is crucial. Accumulation of distribution days can halt the uptrend.