Nifty50: Three Nifty Midcap100: Two Nifty Smallcap100: Three
Global stock markets: Dow 30, +0.6%; Nasdaq, +0.7%; S&P 500, +0.7%; Nikkei, +0.6%; Kospi, -0.3%; Shanghai Composite, -0.3%.
Yesterday, Nifty gapped up again but saw heavy profit booking at higher levels. It made an intraday high of 18,604 and then continued to trade lower from that point throughout the day. The benchmark index finally closed in the lower quartile of the day’s range after remaining volatile during the entire session.
Along with the benchmark index, Nifty Midcap and Smallcap were hammered during the session today. On the sectoral front, all sectors closed in the red, except Nifty IT and Nifty Financial Services, which were up 2.3% and 0.1%, respectively. Nifty Realty and PSU Bank closed 4.9% and 3.7% lower, respectively. India VIX closed 1.4% higher for the day.
Despite the highly volatile session, Nifty escaped a distribution day as volume was lower than the previous session. The distribution day count remains at three. Also, Nifty is trading at new highs, above all its key moving averages. We would like the index to continue this trend. We maintain a positive view on the market, but 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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