Daily Big Picture – Nifty ends 0.5% Higher led by IT Stocks, Nifty Pharma in Correction

Today’s Action

Benchmark indices continued their gains on Tuesday. Nifty, +0.5%, Sensex, +0.5%, Model Portfolio, +1.1%.; MSI Ind 47, +0.5%.

Daily Market Review

India’s benchmark indices continued to rally for the second day of the ongoing week. Nifty PSU Bank (+1.0%) continued its positive streak along with Nifty IT (+1.4%). However, Nifty Pharma (-1.3%) was the worst performer dragged down by losses in Sun Pharm.Industries and Piramal Enterprises. Nifty Metal (-0.7%) also ended in red led by steel companies. We downgraded Nifty Pharma from a Rally Attempt to a Downtrend as it fell to a new low today.

Nifty Midcap and Smallcap gained 0.5% and 0.6%, respectively.

Though Nifty was up 0.5%, the advance-decline ratio was in favor of decliners. Of the 2,059 stocks traded on the NSE, 792 gained, 921 declined, and 346 remained unchanged.

The market status remains unchanged at a Confirmed Uptrend. The distribution count stands at two on the Nifty. We suggest investors to track fundamentally strong stocks trading above their 50- and 200-DMA and take positions on strong breakouts. Investors should begin with a smaller allocation and increase it gradually as market displays positive signals like additional follow-through days.

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