Market Pulse: Confirmed Uptrend

Distribution Day Count: Nifty50 - Four

Nifty Midcap100 - Five

Nifty Smallcap100 - Six

Global stock markets: Dow 30, +0.09%; Nasdaq, +0.5%; S&P 500, +0.2%; Nikkei, +0.4%; Kospi, +0.001%; Shanghai Composite, -0.01%.

Yesterday, Nifty opened about 65 points higher and traded with volatility in the first hour. However, for the rest of the session, there was steady buying interest and the index closed near the day’s high, holding on to decent gains. Volume was almost the same as in the previous session. Broader markets staged a smart recovery and outperformed the major indices. Midcap was up 1.4%, while Smallcap advanced 2%.

On the sectoral front, Nifty Metal (+2.9%) posted a smart recovery and remained the top sectoral gainer. Similarly, Nifty PSU bank, Nifty Realty, and Nifty Bank were up 1.7–1.8%. On the flip side, Nifty FMCG and Nifty IT declined 0.7% and 0.2%, respectively. The advance-decline ratio was in favor of advancers. Of 2,004 stocks traded, 1,181 stocks advanced, 317 stocks declined, and the remaining closed flat.

The distribution day count currently stands at four. Nifty is trading near its all-time high. 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. Further, in the broader market, we recommend that investors be selective when investing in new stocks.

Key News

Hester Biosciences has signed a contract with Bharat Biotech to manufacture drug substance for Covaxin and is likely to commence supplies from Q4 FY22.

Icici Bank has received approval from the RBI to re-appoint Sandeep Bakshi as its MD and CEO for two years until October 3, 2023.

Real estate investment trusts (REITs) and Infrastructure investment trusts (InVITs) will be included in Nifty indices from September 30. This will enable increased participation from investors, resulting in increased liquidity volumes, and helps in better price discovery.

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Author's Bio: 

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