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Nifty Reclaims 50-DMA; Banking Stocks Lead, Pharma and Metal Stocks Lag

Posted Date: April 28 2021
Today’s Action
Nifty, +1.44%; Sensex, +1.6%; Nifty Midcap, +1.1%; Nifty Smallcap, +0.6%; Model Portfolio, +0.9%
Market Pulse: Confirmed Uptrend
 
Nifty opened 50 points higher, gained momentum as the session progressed, and closed near the day’s high. We consider today’s move as a follow-through day and upgrade market status to a Confirmed Uptrend. The logic behind it: 1) Nifty and Sensex gained 1.44% and 1.6%, respectively. 2) Volume was higher than yesterday’s session. 3) Nifty reclaimed its 50-DMA. 4) Market breadth is improving (Nifty Midcap50 closed 1.7% higher). 5) Leading stocks are in momentum and off lows.
 
On the sectoral front, barring Nifty Pharma (-0.3%), Metal (-0.3%), and Realty (-0.9%), all others closed in the green. Nifty Bank and Financial Service each closed 3% higher. The advance-decline ratio was in favor of advancers. Of the 2,249 stocks traded, 1,179 advanced, 708 declined, and the rest remained unchanged.
 
Looking ahead, without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions. Stocks that are breaking out of consolidation have higher relative strength, and superior fundamentals can do well. Continue to trim or avoid ideas lagging and/or breaking down below major moving averages.

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