Market Pulse: Confirmed Uptrend

Distribution Day Count: Nifty50: One Nifty Midcap100: Four Nifty Smallcap100: Four

Global stock markets: Dow 30, -0.2%; Nasdaq, -0.6%; S&P 500, -0.1%; Nikkei, -0.5%; Kospi, -0.9%; Shanghai Composite, -0.1%.

Yesterday, Nifty started the session on a flat note and traded in a narrow range in the morning session. The index turned highly volatile and negative in the afternoon and made the day’s low of 17,254. However, there was some buying in the last hour, which helped the index close flat for the day. It was a mixed reaction on the sectoral front. Financial-related indices closed 0.8–1.0% higher. On the flip side, Nifty IT, Media, Auto, Realty, and Pharma closed 0.3–0.7% lower. FIIs were net sellers at Rs 800 crore, while DIIs were net buyers at Rs 1 crore.

Two distribution days expired last week, bringing the distribution day count down to just one. Further, Nifty is now trading near its all-time high and is placed above all its key moving averages. We would like the index to continue this trend. 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.

Key News

Jindal Steel & Pwr.(Nse)’s subsidiary Jindal Steel & Power (Australia) made a pre-payment of $105.66M. The prepayment has helped reduce the Australian debt by approximately 50%.

Tata Consultancy Svs. partnered with Avianca, one of the leading airlines in South America, to accelerate Avianca’s journey to the cloud.

Infosys and The Economist Group announced a new strategic partnership designed to enable and accelerate sustainability solutions and drive world-changing impact through a new B2B model.

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