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Nifty Reverses Intraday Loss; Broader Market Outperforms

June 02 2021
Today’s Action
Nifty, +0.01%; Sensex, -0.16%; Nifty Midcap, +1.4%; Nifty Smallcap, +1.3%; Model Portfolio, +1.2%.
Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
Nifty started the session on a weaker note and continued to move lower. However, in the last couple of hours, it advanced more than 100 points from the day’s low and reversed losses to close flat. Today, volume was on the lower side. The broader market indices outperformed the major index. Nifty Midcap and Smallcap gained more than 1%. On the sectoral front, Nifty Auto (+1.9%), Metal (+2.1%), and PSU Bank (+3%) were the top gainers. On the flip side, Nifty FMCG, IT, and Financial Services closed 0.2–0.7% lower. The advance-decline ratio was in favor of advancers, as out of 2,255 traded stocks, 1,383 stocks advanced, 535 stocks declined, and the remaining closed flat.
Nifty making a new high, the broader market back in momentum, and no distribution day after May 11 are positive signs for a sustainable rally. However, 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. 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.
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