Nifty, +0.5%; Sensex, +0.4%; Nifty Midcap, +1.3%; Nifty Smallcap, +2.1%; Model Portfolio, +1.4%
Market Pulse Confirmed Uptrend
Distribution Day Count: One
After opening around 100 points higher, Nifty quickly saw selling pressure and made an intraday low of 12,825. It made a new all-time high of 12,968.9, intraday. There was volatility throughout the session. Buying was observed at the lower levels and Nifty closed 100 points above its day’s low. 72% of Nifty50 stocks advanced today, led by Oil & Natural Gas (+6.8%) and Indusind Bank (Nse) (+4.8%).
On the sectoral front, the reaction was mixed, the majority of indices ended in the green. Nifty IT (+2.8%) advanced the most, followed by Pharma (+1.8%) and Metal (+1.2%). Market breadth was in favor of advancers. Of 2,228 stocks traded, 1,082 advanced, 784 declined, and the rest remained unchanged.
We are in a Confirmed Uptrend but need to be prudent and cautious while adding fresh positions, as Nifty is currently trading ~20% above its 200-DMA, which is rare. We expect some pullback in the market. However, a small pullback/consolidation 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. We will look for leadership among some good stocks to push the market up. On the flip side, tracking distribution days is crucial. Accumulation of distribution days can halt the uptrend.