Nifty Hits New All-Time High; Airtel Rights Issue to Open October 5—8

Nifty, +1.6%; Sensex, +1.6%; Nifty Midcap, +1.5%; Nifty Smallcap, +0.8%; Model Portfolio, +1%.

Market Pulse: Confirmed Uptrend

Distribution Day Count: Two

Today, Nifty gapped up taking a cue from global markets. It started the session with a gain of 120 points and continued its momentum through the session. It made higher highs and higher lows on the hourly chart, which is a bullish sign. In the process, it made a fresh all-time high of 17,843 and closed near the day’s high. Of Nifty50 stocks, 80% closed in the green, led by Bajaj Finserv (+4.6%) and Hindalco Industries (+4.4%).

Barring Nifty Media (-1.7%), all sectoral indices closed higher. Nifty Realty (+8.7%) advanced the most, followed by financial-related indices. The advance-decline ratio was in favor of advancers. Of 2,045 stocks traded, 1,201 stocks advanced, 743 stocks declined, and the remaining closed flat.

The distribution day count currently stands at two. One is set to expire next week. Further, Nifty is now trading above all its key moving averages. We would like the index to continue to trade above its key moving averages. After such a sudden rally, one must also be prepared for some mild profit booking. In the process, if the index adds a couple of distribution days, stages a reversal, or breaches its key moving averages, we may change the market status to an Uptrend Under Pressure. Reducing exposure to stocks breaking below their 21- or 50-DMA on higher volume is important.

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