Nifty Retakes its 50-DMA; Financial Related and Metal Stocks Surge

Posted Date: May 17 2021
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Today’s Action
Nifty, +1.7%; Sensex, +1.7%; Nifty Midcap, +1.8%; Nifty Smallcap, +1.2%; Model Portfolio, +2.5%
 
Market Pulse:  Confirmed Uptrend
 
Distribution Day Count:    Three
 
Nifty opened around 100 points, higher tracking global cues. The index made a new intraday high, and reclaimed its 50-DMA. As volume was lower than yesterday’s, today’s action didn’t qualify as an additional follow-through day. Of the Nifty50 stocks, 78% advanced led by Indusind Bank(Nse) (+7.5%) and State Bank Of India (+6.7%).
 
Barring Nifty Media (-0.5%) and Pharma (-0.2%), all the sectoral indices closed in the green. Financial related indices led the rally followed by Metal stocks. The advance-decline ratio was in favor of advancers. Of the 2,299 stocks traded, 1,333 advanced, 627 declined, and the rest remained unchanged.
 
On a technical perspective, Nifty retook its 50-DMA, which is a good sign. Without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions. 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. Continue to trim or avoid ideas lagging and/or breaking down below major moving averages.
 
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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.
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