Nifty Edges Closer to 10,000; Motherson Sumi Q4 Results Beat Estimates

Nifty, +1.6%; Sensex, +1.6%; Nifty Midcap, +1.4%; Nifty Smallcap, +2.4%; Model Portfolio, -0.6%

Market Pulse : Confirmed Uptrend

After opening on a higher note, Nifty moved in a zig-zag manner and turned negative in the first half of the trading session. Further buying came in the second half as Nifty advanced as much as 100 points post noon. It closed near the day’s high and slightly below 10,000. Volume was lower compared with the previous session. 72% of Nifty 50 stocks ended in the green, led by Bajaj twins and Zee Media.

Barring Nifty FMCG (-0.7%), all sectoral indices closed in the green. Nifty Realty (+4.9%) led the rally followed by Nifty Media, Financial Services, and Pvt Bank which gained 3-4% as Nifty touches 10000. The advance-decline ratio was inclined toward advancers. Of 2,122 stocks traded, 1,380 advanced, 428 declined, and the remaining traded flat.

The beauty of our CAN SLIM method is that we need not "expect," "hope," or "wish for" with respect to market action. We will take what the market gives us and continue to monitor unfolding conditions. We always look for stocks with strong relative strength. But investors should understand that it is not prudent to blindly buy stocks that have a high relative strength or simply because they have been performing well. This is the essence of momentum investing, and it can get you into trouble. Rather, one should base buying decisions on sound fundamental and technical analysis. Only invest in stocks that have strong fundamentals (i.e., good sales, earnings, margins, etc.) and that are breaking out of sound base structures on heavy volume.

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