Nifty, +0.07%; Sensex, -0.03%; Nifty Midcap, -0.2%; Nifty Smallcap, -0.1%; Model Portfolio, +0.5%
Market Pulse: Confirmed Uptrend
Distribution Day Count: ThreeNifty gapped higher this morning but gradually moved lower as the day progressed. In the last hour, Nifty recovered from the day’s low and managed to close in the green. Volume was lower compared with the last few sessions. Banking and Financial-related stocks underperformed (Hdfc Bank, Axis Bank, Indusind Bank (Nse), and Housing Development Fin. were down 0.5–2.0%). All other sectors closed in positive territory. Nifty Pharma, FMCG, Realty, IT, and Auto closed 0.2–0.7% higher. Nifty Bank and Financial Services closed almost 1% lower. The advance-decline ratio was in favor of advancers. Of the 2,263 stocks traded, 1,040 advanced, 874 declined, and the rest remained unchanged. Nifty is trading 2.5% and 3.0% above its 21- and 50-DMA, respectively.
Last week, Nifty retook its 50-DMA, did not add a distribution day, and registered an additional follow-through day, which are positive signs. We would like the index to hold its 50-DMA and trade above that. 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.