Market Pulse: Confirmed Uptrend

Distribution Day Count:

Nifty50: One Nifty Midcap100: Three Nifty Smallcap100: Three

Global stock markets: Dow 30, +0.7%; Nasdaq, -0.1%; S&P 500, +0.2%; Nikkei, +0.5%; Kospi, +0.9%; Shanghai Composite, +0.1%.

Nifty started the session on a negative note yesterday and traded lower throughout the morning session. After making a low of 17,269, the index reversed losses in the second half of the session and closed flat for the day. There was mixed action on the sectoral front. Nifty Metal and IT helped the index stage a comeback with gains of 1.3% and 0.9%, respectively. On the flip side, Bank indices closed 0.4–0.6% lower. FIIs were net buyers at Rs 1,419 crore and DIIs were net sellers at Rs 506 crore.

The distribution day count currently stands at 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

- CPI cooled to 5.3% in August from 5.6% in July. Food price inflation fell to 3.11% from 4% in July.

Gujarat State Petronet: Shri Pankaj Kumar, IAS, was appointed as chairman & managing director of the company.

Wipro (Nse): partnered with Tennessee-based First Horizon Bank (FHN) to streamline cloud migration and integrate new fintech capabilities.

Buy Watchlist: Mastek (Nse), Mold-Tek Packaging (Nse), Orient Electric, Reliance Industries, Tata Power, Bhansali Engr. (Nse), I G Petrochemicals, Birlasoft, Relaxo Footwears, Aarti Industries (Nse), Kalyani Steels, State Bank Of India, Colgate-Palmolive India, Berger Paints India, Icici Bank, Ratnamani Metals & Tubes.

Visit MarketSmith India to Read More About Indian Share Market News, Daily Market Tips, Model Portfolio etc.

Author's Bio: 

Marketsmith India, One stop solution for all your Stock Market needs. Get stock market ideas and stock predictions all at one place. A proprietary tool by William O'Neil India following the CANSLIM method of investing.