Market Pulse: Confirmed Uptrend

Distribution Day Count: Three

Global stock markets: Dow 30, +0.04%; Nasdaq, +0.04%; S&P 500, +0.2%; Nikkei, -1.9%, Kospi, -1.2%; Shanghai Composite, +0.07%

Last week, Nifty traded in the range of 16,150–16,350 for the first three trading sessions. Despite significant intraday volatility, the index closed flat in these sessions. However, the benchmark witnessed strong buying interest from investors after a flat start in Thursday’s session. It formed a higher-high, higher-low on the hourly chart and closed 0.5% higher. On Friday, it retained the momentum and extended the gains further to close at an all-time high. The broader market remained highly volatile during the week, with both midcap and smallcap underperforming the benchmark and declining 1.2% and 2.2%, respectively.

During the week, the sectoral indices had mixed results. Nifty IT (+4.4%) gained the most, followed by Nifty Energy (+1.4%) and Nifty Financial (+1.3%). On the flip side, Nifty Pharma (-3.2%) and Nifty Realty (-2.2%) were the major decliners.

Currently, the distribution day count stands at three. Nifty is trading near its all-time high. We will continue to follow the action of leaders and look for constructive behavior and potential entry points to develop. If the index adds a couple of distribution days, stages a reversal, or breaches key moving averages, we may change the market status to an Uptrend Under Pressure. We continue to recommend a selective approach to increase risk. Focus on quality ideas emerging from sound bases with RS line at or near new highs while reducing exposure to stocks breaking below key support levels.

Key News

Oil & Natural Gas announced its Q1 FY22 results. Revenue increased 8.6% q/q to Rs 23,021.6 crore. PAT declined 35.6% to Rs 4,334 crore.

Glenmark Pharms. (Nse) announced its Q1 FY22 results. Revenue grew 26.5% y/y to Rs 2,965 crore. PAT increased 20.5% to Rs 306.5 crore.

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.