Weekly Action
Nifty, -1.9%; Sensex, -2.0%; Nifty Midcap, -1.3%; Nifty Smallcap, -0.2%; Model Portfolio, -1.7%.
Market Pulse Downtrend
Weekly Market Review
Nifty started the week on a negative note and market status was downgraded to a Downtrend. On Thursday, the index showed signs of upside reversal, but failed to hold gains on Friday. Nifty found good support near its 100-DMA over the last two weeks, but closed below it today. On a weekly basis, barring Nifty Pharma (+0.3%) and Metal (+0.7%), all the major sectoral indices closed in the red. Nifty PSU Bank, FMCG, Realty, and IT closed 2.5–3.5% lower. Today, the advance-decline ratio was in favor of advancers. Out of 2,247 stocks, 1,032 advanced, 834 declined, and the rest remained unchanged.
On Monday, we had changed the market status to a Downtrend from a Rally Attempt as Nifty breached its previous correction low (14,248). Tuesday was considered as Day 1 of an attempted rally. However, on Thursday, it breached Monday’s low, so the correction low was reset to 14,151. However, as Nifty closed in the upper half, yesterday’s session was considered as Day 1 of an attempted rally. The index traded above the correction low today, so we consider it Day 2.
Looking forward, we will shift the market to a Rally Attempt if Nifty establishes a bottom and stays above 14,151 for one more session. From there, 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 breaking out of early-stage base patterns and showing best relative strength with good accumulation.