Nifty Reclaims 21-DMA; RIL and Asian Paints Hit New Highs

Nifty, +1.5%; Sensex, +1.7%; Nifty Midcap, +1.2%; Nifty Smallcap, +1.6%; Model Portfolio, +1.9%

Market Pulse Uptrend Under Pressure

Distribution Day Count: Six

Nifty gapped higher this morning and remained in positive momentum throughout the session. The volume was lower compared with the previous session. Nifty Reclaimed its 21-DMA and closed 0.5% above it. This is a positive sign after clustering of distribution days over the last few sessions. Gains in Nifty were concentrated among Reliance Industries (+7%), Bharat Petroleum (+6%), and Asian Paints (+4%). Nifty Midcap and Smallcap closed 1.2% and 1.7% higher, respectively. On the sectoral front, Nifty Metal closed 1.1% lower, while Nifty Pharma closed flat. All other sectoral indices closed in the green. Nifty Bank, Auto, Financial Services, Realty, FMCG, and IT closed 0.5–1% higher. Advance-Decline ratio was skewed toward advancers. Out of 2,189 stocks traded, 1,286 advanced, 528 declined, and the rest remained unchanged.

As the market is in an Uptrend Under Pressure, investors should proceed ahead with caution. Unless a stock shows exceptional fundamental and technical strength, no new addition to the portfolio is advised. Investors should consider booking profits in stocks that have performed well and have advanced 20–25% from their ideal buy points. Looking forward, we will change the status to a Downtrend, if more distribution days are added or if Nifty breaches the 50-DMA (11,172) and the 200-DMA (10,798). On the flip side, the status will be back to a Confirmed Uptrend if Nifty retakes 11,795 level (high during the recent rally).