Market Pulse: Confirmed Uptrend

Distribution Day Count: One

Weekly Market Review

Nifty traded in a narrow range of 17,254-17,436 this week. It consolidated gains after a strong upward move last week. On a weekly basis, it closed 0.3% higher, thus closing higher for the third consecutive week. Despite weekly expiry today the index was not volatile. It started the session with minor cuts and traded in flat to negative territory for most of the session. Last-hour buying helped the index close 0.1% higher for the day. Today, the advance-decline ratio was in favor of advancers. Of the 2,001 stocks traded, 1,070 advanced, 852 declined, and the rest remained unchanged.

During the week, the broader market indices outperformed the general market. Midcap and smallcap were up 0.9% and 2.3%, respectively. Sectoral action was mixed. Nifty Media (+3.8%) was the top gainer, followed by Nifty Energy, Metal, FMCG, and Fin Service, which closed 0.2–1.0% higher. On the flip side, Nifty Pharma (-1.1%) was the top decliner.

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

Uco Bank (Nse) shares rose over 10% as the RBI lifted Prompt Corrective Action (PCA) restrictions on the bank.

Tata Consultancy Svs. has been selected by Transport for London (TfL) to design, implement, and operate a new smart mobility system. The 10-year deal duration, which has the opportunity for a five-year extension.

Lic Housing Finance(Nse) approved allotment of 4.54 crore preferential shares to LIC at Rs 514.4 per share.

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