RIL, HDFC Bank, and IT Stocks Drag Nifty Lower; Dr Reddy’s Q1 Results Beat Estimates

Nifty, -0.9%; Sensex, -1.1%; Nifty Midcap, +0.5%; Nifty Smallcap, -0.1%; Model Portfolio, +1%

Market Pulse Confirmed Uptrend

Today, after a muted opening, Nifty attempted to continue its positive momentum following yesterday’s upswing. However, the index slipped in the red after making a high of 11,341. Nifty dropped almost 200 points from high as the selling pressure intensified in the index heavyweights such as RIL, HDFC Bank, and IT stocks in the second half. As the volume was lower compared with yesterday’s session, we will not consider today's move as a distribution day. The selling was concentrated among large-cap stocks only. Nifty Midcap and Nifty Next50 closed in the green. On the sectoral front, Nifty Pharma (+3%) was the outperformer while Nifty Auto and IT were down ~1%. Market breadth was inclined toward advancers. Of 2,166 stocks traded, 1,000 advanced, 800 declined, and the remaining traded flat.

The Indian market remains in a Confirmed Uptrend. However, things can change quickly due to high volatility. We are operating in an uncertain environment where information is distributed unevenly, and it is an environment where outside forces, either intentionally or unintentionally, affect prices across various time frames. We will continue to monitor the behavior of leading stocks and keep an open mind as to how it unfolds. We will wait for solid entry points before buying.