Market Pulse: Confirmed Uptrend

Distribution Day Count:

Nifty50: Two Nifty Midcap100: Three Nifty Smallcap100: Two

Global stock markets: Dow 30, +0.1%; Nasdaq, 0%; S&P 500, +0.2%; Nikkei, +0.3%; Kospi, +0.5%; Shanghai Composite, -0.4%.

On Friday, Nifty gapped up near 17,900 and made a new all-time high of 17,947, inching closer to 18,000. However, the benchmark pared most of its gains and closed 0.2% higher. Of the 2,036 stocks traded, 713 advanced, 1,235 declined, and the rest remained unchanged. On the sectoral front, Nifty PSU Bank (-4.4%), Metal (-3.3%), and Pharma (-0.5%) closed lower for the week. Nifty Realty (+21.2%) was the top gainer, followed by Nifty Media (+11.7%).

The distribution day count currently stands at two, with one set to expire this week. 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

Ultratech Cement has announced its commitment to the Climate Group’s RE100 initiative, which aims for 100% renewable energy usage by 2050.

Hero Motocorp’s subsidiary Hero Electric partners, with Massive Mobility, to set up 10,000 EV charging stations across the country in the next one year.

Tata Motors achieves cumulative EV sales mark of 10,000 units.

Buy Watchlist: Tata Chemicals, Century Plyboards (India), Mastek (Nse), Orient Electric, Reliance Industries, Bhansali Engr. (Nse), I G Petrochemicals, Birlasoft, Relaxo Footwears, Aarti Industries (Nse), Kalyani Steels, State Bank Of India, Colgate-Palmolive India, Berger Paints India, Icici Bank, Ratnamani Metals & Tubes.

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Author's Bio: 

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