Nifty Trades in a Narrow Range; Zee Entertainment Surges Over 30% after Deal with Sony Pictures

Nifty, -0.1%; Sensex, -0.1%; Nifty Midcap, +1.7%; Nifty Smallcap, +1.4%; Model Portfolio, +1.9%.

Market Pulse: Confirmed Uptrend

Distribution Day Count: Two

After three days of intraday movements of more than 200 points, Nifty today traded in a narrow range of less than 90 points. It continued to oscillate between green and red territories. Market participants are awaiting the outcome of the Fed meeting, which may move a step closer to tapering. Of Nifty50 stocks, 54% closed in the green, led by Coal India (Nse) (+3.6%) and Tech Mahindra (+3.6%).

It was a mixed reaction on the sectoral front. Nifty Media (+13.6%) advanced the most as its heavyweight stock Zee Entertainment Ents. advanced more than 30%. The advance-decline ratio was in favor of advancers. Of 2,017 stocks traded, 1,325 stocks advanced, 612 stocks declined, and the remaining closed flat.

The distribution day count currently stands at two. Further, Nifty is now trading above all its key moving averages. After a fall today, we would like the index to continue to trade above its key moving averages. After such a sudden rally, one must also be prepared for some mild profit booking. In the process, 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.

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