Market Pulse: Confirmed Uptrend
Nifty50: One Nifty Midcap100: Three Nifty Smallcap100: Two
Global stock markets: Dow 30, +0.2%; Nasdaq, -0.5%; S&P 500, -0.3%; Nikkei, -0.3%; Kospi, -0.8%; Shanghai Composite, +0.2%.
Yesterday, Nifty started the session on a positive note, opening around 80 points higher. However, it pared all gains within the first hour and turned negative for a while. The index quickly found support around 17,800 and ended the session flat. On the sectoral front, Nifty IT (-2.9%), Pharma (-0.9%), and FMCG (-0.9%) closed lower. On the flip side, Nifty Auto (+3.2%) advanced the most, followed by Realty (+3.0%). The advance-decline ratio was in favor of decliners. Of 2,060 stocks traded, 907 stocks advanced, 1,055 stocks declined, and the remaining closed flat.
Per the 25-session rule, one distribution day expired yesterday, thus decreasing the count to one. Further, Nifty is now trading above all its key moving averages. We would like the index to continue to trade above its key moving averages. 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
Housing Development Fin. plans to raise Rs. 6,000 crore by issuing bonds on a private placement basis to augment its long-term resources.
Patel Engineering (Nse) bags Rs. 1,251 crore order for 500MW Teesta-VI hydropower project. The project is located in Sikkimâs South Sikkim District.
Indian Oil says India needs to add 2M barrels per day (bpd) of refining capacity by 2030 to help its economic expansion, even as the country takes steps to move to cleaner fuels.
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