Market Pulse: Confirmed Uptrend
Nifty50: Three Nifty Midcap100: Three Nifty Smallcap100: Two
Global stock markets: Dow 30, +0.3%; Nasdaq, +0.5%; S&P 500, +0.4%; Nikkei, +1.6%; Kospi, +1.6%; Hang Seng, +2.1%.
Yesterday, Nifty opened around 35 points higher and made a high of 17,884 in the opening hour. However, it failed to hold gains and the selling pressure intensified in the second half. The market escaped a distribution day as the volume was lower compared with Tuesday's session. Nifty closed in the bottom quartile of the day’s range.
On the sectoral front, all the indices closed lower. Nifty Metal, Pharma, PSU Bank, and Realty were down 1.5–3.0%. Nifty Bank, Auto, Financial Services, FMCG, and IT closed 0.3–1.3% lower.
Nifty is still around 50 points above its 21-DMA. It is important to hold that level. On the flip side, the distribution day count rose to three last week. If the index adds a couple of distribution days, stages a reversal, or breaches its key moving averages, we may change the market status to an Uptrend Under Pressure. Reducing exposure to stocks breaking below their 21- or 50-DMA on higher volume is important.