21/09/2022
Nifty Finds Support Near 21-DMA; FMCG Stocks Lead, Metal and Pharma Lag
Daily Action
Nifty, -0.55%; Sensex, -0.44%; Nifty Midcap, -0.74%; Nifty Smallcap, -1.03%; Model Portfolio, -0.5%.
Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
Today, Nifty opened around 50 points lower but quickly moved above 17,800. However, volatility was high in the opening hour and Nifty again dropped below 17,750. As the day progressed, selling intensified and Nifty made a low below 17,700 but found support near its 21-DMA. It again tried to move higher from there but found resistance near 17,800. It closed 0.5% lower but volume was less than yesterday’s session, so today’s session will not qualify as a distribution day.
On the sectoral front, barring Nifty FMCG (+1.2%), all the key indices closed lower. Nifty Metal (-2%) and Pharma (-1.4%) were the top decliners. The broader market underperformed. The advance-decline ratio was 0.45, indicating a higher number of decliners.
Nifty was shifted to a Confirmed Uptrend on July 18 as the index staged a follow-through day. The distribution day count stands at three. If one more distribution day is added, we will change the market status to an Uptrend Under Pressure. If you want to commit capital, focus on high relative strength ideas trading above their respective 50-DMA.
Key News:
Info Edge (India) (Nse) to invest Rs 80 Crore in Metis Eduventures.
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Capri Global Capital says the company's gold loan AUM crosses Rs 100 crore. The company had launched a gold loan business on August 23.
T V S Motor launches TVS Apache RTR 160 2V with ABS in Bangladesh.
Jmc Projects India board approves raising up to Rs 200 crore via NCDs.
The U.S. Fed meeting outcome to be out today. Consensus expects 75bps rate hike. Comments from Fed Chairman will be important.
