Daily Big Picture – IT Stocks Gain; Nifty up 0.4%, Midcaps down 0.9%

Today’s Action

Benchmark indices gain for the third straight trading session. Nifty, +0.4%, Sensex, +0.6%, Model Portfolio, -1.1%; MSI Ind 47, -0.9%.

Daily Market Review

India’s benchmark indices posted modest gains on Wednesday in a range-bound trading session. The Nifty broke its 200-DMA intraday but fell back to end 0.4% up from the previous session’s close.

Barring large caps, performance of the majority of stocks was largely weak. On sectoral front, most indices ended in the red except Nifty IT (+2.8%) and Nifty Media (+2.14%). Nifty PSU bank (-2.0%), Nifty Realty (-1.4%), and Nifty Metal (-1%) were among the top losers.

Nifty Midcap and Smallcap fell 0.9% and 0.8%, respectively.

The advance-decline ratio was in favor of decliners. Of the 2,064 stocks traded on the NSE, 593 gained, 1,131 declined, and 340 remained unchanged.

The market status remains unchanged at a Confirmed Uptrend. The distribution count stands at two on the Nifty. We would 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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