Nifty, -1.1%; Sensex, -1.2%; Nifty Midcap, +0.5%; Nifty Smallcap, +1.2%; Model Portfolio, +1.5%
Market Pulse Confirmed Uptrend
Distribution Day Count: Three
After advancing for three consecutive sessions, Nifty succumbed to selling pressure today. It opened with a cut of over 200 points, tracking global cues. The session was volatile due to the weekly expiry of index options. India VIX was up 9%. Nifty found support at its 21-DMA and escaped adding a distribution day as volume was lower than the previous session. Of Nifty50 stocks, 76% of the stocks declined, led by Jsw Steel (-3.3%) and Housing Development Fin. (-2.7%).
Barring Nifty Media (+1.6%) and Realty (+0.1%), all the sectoral indices closed in the red. Nifty Metal (-2.0%) declined the most followed by Nifty Fin Services (-1.8%). Advance-decline ratio was skewed toward advancers. Out of 2,232 stocks, 1,022 advanced, 862 declined, and the remaining were unchanged.
During the week, two distribution days expired due to aging, after which the total count decreased to three. Another distribution day is set to expire tomorrow. Decreasing distribution day count is a good sign. However, if the index breaches its 50-DMA, we may downgrade the status to an Uptrend Under Pressure. However, without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions.