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Nifty Trades Volatile Near All-Time High; Financials, Metal, and Realty Stocks Drag

June 01 2021
Today’s Action
Nifty, -0.05%; Sensex, +0.0%; Nifty Midcap, -0.1%; Nifty Smallcap, -0.7%; Model Portfolio, -0.3%.
Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
After gapping up on open, Nifty hit the day’s high of 15,661 in the first hour of the session. In the next two hour, it pared opening gains and traded closer to the day’s low of 15,528. The index remained volatile in the second half and closed flat. Today, volume was on the lower side. Broader market indices continued to underperform the major index. Midcap was down 0.10%, while Smallcap closed 0.70% lower.
On the sectoral front, the majority of indices closed in the red. Nifty Pvt Bank (-0.9%) and Metal (-0.8%) were the top decliners. On the flip side, Nifty IT (+0.1%) and Nifty Pharma (+0.04%) managed to close in the green. The advance-decline ratio was in favor of decliners, as out of 2,253 traded stocks, 721 stocks advanced, 1,197 stocks declined, and the remaining closed flat.
Nifty making a new high and not registering any 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 Uptrend 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.
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