Nifty Pares Most of its Intraday Losses; Metal Stocks Decline 6.6% for the Week

Posted Date: June 18 2021
Article Image
Weekly Action
 
Nifty, -0.7%; Sensex, -0.2%; Nifty Midcap, -3.1%; Nifty Smallcap, -1.8%; Model Portfolio, +3.2%.
 
Market Pulse: Confirmed Uptrend
 
Distribution Day Count: Three
 
Weekly Market Review
 
After four consecutive weeks of gains, Nifty’s advancement halted during the week. The first two trading sessions of the week were good as the index hit a fresh all-time high on Tuesday. Since then, it added two distribution days. Today was a highly volatile session as Nifty traded in a range of over 300 points. After a positive start to the session, it quickly lost more than 300 points and breached its 21-DMA momentarily. The index then recovered well from the lows to pare most of its intraday losses and reclaim its 21-DMA.
 
Barring Nifty FMCG (+1.8%) and IT (+0.8%), all sectoral indices closed lower for the week. Nifty Metal (-6.6%) declined the most. Nifty Pharma, Auto, Energy, PSU Bank, and Realty declined 3-4%. Today, the advance-decline ratio was in favor of advancers. Of the 2,260 stocks traded, 620 advanced, 1,327 declined, and the rest remained unchanged.
 
Currently, the distribution day count 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.
Loading...