Market status: Confirmed Uptrend

Distribution days: Two

Global stock markets: Dow 30,-1.3%; S&P500,-1.5%; Nasdaq,-1.5%; Nikkei, -0.1%; Hang Seng, -0.1%; Kospi, +0.1%

Yesterday, Nifty opened at a record high above 14,100 but witnessed profit booking and traded toward the day's low of 13,953 in the initial two hours of the session. However, it posted a smart recovery of about 170 points off lows during the day and closed holding solid gains. Volume was higher than in the previous session. The broader market outperformed compared with the general market. Midcap closed 1.4% higher, while Smallcap was up 1.2% for the day.

On the sectoral front, barring Nifty Bank and Nifty Pvt Bank, all other sectoral indices closed in the green. Nifty Metal (+5.1%) extended its gain, followed by Nifty IT, which was up 2.7%. Nifty Media, Auto, PSU Bank, and Pharma were up in the range of 1.0–1.6%.

With leadership broadening and indices above relevant intermediate-term moving averages, we will continue to look for leadership-quality growth names to form entry points. If a pullback/consolidation happens, it will be crucial for Nifty to hold its 21-DMA. It is advised to closely review the existing positions and book profits in stocks that are extended from their moving averages and showing technical weakness. Also, tracking distribution days is crucial as rising in distribution days can halt the uptrend.

Key News

Sun Pharm.Industries initiated Phase-2 trials of the oral drug SCD-044 in patients with moderate to severe plaque psoriasis.

Nbcc (India) was awarded a work order worth Rs 351 crore to Gaursons Hi-Tech.

Knr Constructions received an order worth Rs 603.63 crore in Chennai.

O’Neil Market Condition Report

For the 24 emerging markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 84%; Rally Attempt, 4%; Uptrend Under Pressure, 12%; Downtrend, 0%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 66%; Rally Attempt, 0%; Uptrend Under Pressure, 34%; Downtrend, 0%.

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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.