Market Pulse: Confirmed Uptrend

Distribution Day Count:

Nifty50: Three Nifty Midcap100: Three Nifty Smallcap100: Two

Global stock markets: Dow 30, -1.6%; Nasdaq, -1.2%; S&P 500, -0.4%; Nikkei, -2.1%; Kospi, -1.4%; Shanghai Composite, +0.9%.

Yesterday, Nifty started the session on a flat note and traded sideways in the first half. Volatility gripped markets in the second half as it was the monthly expiry day. The benchmark fell sharply by around 150 points and closed near the day’s low. Even as the decline exceeded 0.2%, Nifty escaped distribution as volume was lower than Wednesday’s session. Sectoral action was mixed, with the majority ending in the red. Nifty Realty (+1.5%) gained the most, followed by PSU Bank (+0.8%) and Pharma (0.4%). The remaining sectors declined 0.1–0.9%.

Currently, the distribution day count stands at three. Further, Nifty is 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 pullback and profit booking. In the process, if the index adds a couple of distribution day, 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

Phillips Carbon Black gets board’s approval to launch QIP at the floor price of Rs 255.85 per share on September 30.

Adani Green Energy completed the acquisition of Vento Energy Infra from Essel Green Energy.

Buy Watchlist: Sun Pharm.Industries, Tata Chemicals, Finolex Industries (Nse), Mastek (Nse), Reliance Industries, Bhansali Engr. (Nse), Aarti Industries (Nse), State Bank Of India, Berger Paints India, Icici Bank, Ratnamani Metals & Tubes.

Sell Watchlist: Action Construction Equ., Rain Industries, Knr Constructions, Polycab India, and Canfin Homes

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Author's Bio: 

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