Weekly Action
Nifty, -1.5%; Sensex, -1.5%; Nifty Midcap, -3.0%; Nifty Smallcap, -3.5%; Model Portfolio, -1.3%.
Market Pulse Rally Attempt
Weekly Market Review
Nifty started the week on a negative note as it breached its 50-DMA on Monday. It tested its 100-DMA and found support in the first two trading sessions of the week. During the holiday-truncated trading week, Nifty was highly volatile and pared most of its Monday losses in the next three sessions.
Today, Nifty opened on a flat note and rose over 120 points intraday. But in the last hour, it booked profits and closed below its 21-DMA. The advance-decline ratio was in favor of advancers. Out of 2,249 stocks, 1,105 advanced, 768 declined, and the rest remained unchanged.
On a weekly basis, barring Nifty Pharma (+1.8%), all the sectoral indices closed in the red. Nifty PSU Bank (-6.9%) declined the most, followed by Realty (-5.7%) and Media (-5.3%).
Market Status Overview: Market Status Changed to a Rally Attempt
We are changing the market status to a Rally Attempt as Tuesday was a blue rally day (Day 1), and Nifty managed to stay above its recent low for two consecutive sessions.
From here, we would prefer to see a [follow-through day] before shifting the market to a Confirmed Uptrend. A follow-through day is a solid up session, generally with a 1.5% or higher gain, with volume higher than the previous day. Should this occur, the focus will be on ideas breaking out of early-stage base patterns and showing the best relative strength with good accumulation. On the flip side, Nifty is still below its 50-DMA. If it breaches its recent low of 14,248, the market will be moved back to a Downtrend.