Today’s Action

Nifty, +3.8%; Sensex, +3.6%; Nifty Midcap, +2.3%; Nifty Smallcap, +3.1%; Model Portfolio, 0%

Daily Market Review

Market Pulse: Confirmed Uptrend

Nifty ended the day with strong gains, up about 3.5%, on higher volume than yesterday’s session. As the volume was higher and percentage gains met our threshold, today’s action was considered as a follow-through day.Hence, we upgraded the market to a Confirmed Uptrend. We did see some decent percentage gains by many leaders, but most of them are still below their key moving averages.

Nifty is trading more than 20% below its 50- and 200-DMA. We will be very selective about taking any fresh positions. It is important that investors don’t play all their cards at once. We would suggest adopting an investment approach where you begin with a small allocation and increase it as and when the market advances further.

On sectoral front, all the indices closed in the green. Nifty FMCG, Pharma, and Metals gained the most, up 4–5%. The advance-decline ratio was in favor of advancers. Of 2,122 stocks traded, 1,321 advanced, 464 declined, and the remaining traded flat.

Without trying to predict and decode stories, we will take what the market gives us and continue to monitor unfolding conditions. Stocks with higher relative strength and superior fundamentals can do well. Some leading stocks have sharply corrected. Wait for them to put in at least a short period of consolidation and show a constructive breakout from that range. Buying without this period of constructive behavior into a straight upmove off the bottom, puts you at risk of drawdown.

Key News

Infotech Ents. (Nse) has received clearance for its Mysore facility to run its MedTech manufacturing lines to support the production of medical equipment that are critical in the fight against corona.

The State Bank Of India led consortium has unanimously approved the restructuring of Suzlon Energy’s Rs 14,000 crore worth of debt.

According to the RBI, the applicable average base rate to be charged by microfinance companies to their borrowers for the quarter beginning April 1 will be 8.76%.

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Disclaimer: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.

Author's Bio: 

MarketSmith India is an investment advisory product based on William O’Neil’s CAN SLIM method with model portfolio, pattern recognition, idea lists powered by institutional quality data