MarketsmithIndia Articles

Nifty Inches Higher, Trades in a Narrow Range; IT Stocks Outperform

June 24 2021
Today’s Action

Nifty, +0.7%; Sensex, +0.8%; Nifty Midcap, -0.3%; Nifty Smallcap, -0.04%; Model Portfolio, -0.3%

Market Pulse: Confirmed Uptrend

Distribution Day Count: Three

Today, Nifty gapped up by almost 60 points. It crawled higher and moved above 15,800. However, the range was narrow. Gains were mostly from IT stocks. Tata Consultancy Svs. and Infosys were the top gainers on the index. Nifty Auto, Financial Services, Bank, and Metal closed 0.2–0.8% higher. Nifty Realty, Pharma, and PSU Bank closed 0.5–1.2% lower. A few pockets in the broader market faced selling pressure. Midcap and Smallcap underperformed the benchmark indices. The advance-decline ratio was in favor of decliners, as out of 2,260 stocks traded, 771 stocks advanced, 1,138 stocks declined, and the remaining closed flat.

We will continue to monitor the action for signs of health or crack in the market and leaders. The distribution day count currently stands at three. 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.

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.

Related Article