Nifty, +1.5%; Sensex, +1.4%; Nifty Midcap, +1.7%; Nifty Smallcap, +4.2%; Model Portfolio, +3.7%.
Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
Weekly Market Review
Nifty started the week on a positive note and in the process retook its 21-DMA on Tuesday. It was up for four consecutive sessions, but ended flat today. Today, it opened with minor gains and made a new all-time high of 15,962. However, as the session progressed it gave up its gains and closed flat.
Barring Nifty Media (-1.3%) and PSU Bank (-0.3%), all the sectoral indices closed higher. Nifty Realty (+8.6%) was the top gainer followed by Nifty IT and Metal, all of which closed 2.2–2.6% higher. Today, the advance-decline ratio was in favor of advancers. Of the 2,046 stocks traded, 1,005 advanced, 973 declined, and the rest remained unchanged.
Nifty is trading 1% above its 21-DMA after having recently reclaimed it. It is crucial for the index to hold and trade above this level. On the flip side, the distribution day count stood at three. If the index falls further and adds a couple of distribution days, we may change the market status to an Uptrend Under Pressure. We continue to recommend a selective approach to increasing risk. 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.