Nifty, +0.7%; Sensex, +0.7%; Nifty Midcap, +0.9%; Nifty Smallcap, +1.2%; Model Portfolio, +0.7%.
Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
Nifty opened 80 points higher in today’s session on strong global cues. It consolidated its gains in the first half and witnessed further buying interest in the second half, closing near the day’s high and holding a decent gain. However, volume remained on the lower side, which is a red flag. The broader market indices outperformed the major index. Nifty Midcap and Smallcap gained 0.9% and 1.2%, respectively.
On the sectoral front, barring Nifty Pharma, all sectors closed in the green. Nifty Realty (+3.8%) was the top gainer for the day, followed by Nifty Media and Nifty Financial Service, which advanced 1.6% and 1%, respectively. Similarly, Nifty BANK, Nifty FMCG, Metal, and PVT Bank closed 0.5–0.9% higher. The advance-decline ratio was in favor of advancers, as out of 2,253 stocks traded, 1,334 stocks advanced, 594 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 Uptend 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.