Daily Market Review
Market Pulse : Rally Attempt
Nifty opened with a gap down of 70 points. It consolidated a bit before succumbing to selling pressure. It shed around 250 points to end near the day’s low of 11,813. In the process, it breached its key support of the 100-DMA. Currently, it is trading 2.5% and 1% below its 50- DMA and 100-DMA, respectively. It is crucial for Nifty to not breach its 200-DMA (11,682). All Nifty50 stocks ended in the red.
All the sectoral indices ended in the red. Nifty Metal (-5.4%) and Auto (-3.5%) declined the most. Nifty Pharma (-3.1%), PSU Bank (-2.8%), Media (-2.1%), and Realty (-2.2%) were among the other top decliners. Of 2,177 stocks traded, 524 advanced, 1,293 declined, and the remaining traded flat.
Looking forward, we would prefer to see a follow-through day before shifting the market back to a Confirmed Uptrend. Should this occur, the focus will be on ideas that show the best relative strength with good accumulation. The stocks that recover the quickest tend to lead the next run. We would downgrade the market status to a Correction if it breaches its correction low of 11,614.
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