Nifty Closes Near Day’s Highs on Strong Momentum
Nifty Closes Near Day’s Highs on Strong Momentum, July 19
The Nifty index opened with a gap-up of around 50 points on Wednesday and climbed another 30 points from there before reversing to make a low of 19,272 in the first half of the trading session. However, Nifty gained momentum in the latter half of the session and managed to close near the day’s highs. The broader market slightly outperformed the benchmark.
Barring Nifty IT (-0.1%), all sectoral indices closed higher. The top gainers were Nifty PSU Bank (+2%), Media (+1.1%), and Nifty Bank (+0.6%). The advance-decline ratio stood at 1.59, indicating a higher number of advancers.
The market sentiment remained positive on Wednesday, with investors buying on dips. This was supported by strong global cues, as European and US markets were also trading higher. The uptrend in the Nifty index is likely to continue in the near term, as it has crossed its previous high of 18,887 on June 28. However, the market is likely to remain volatile, as there are some concerns about global economic growth.
Market Status Upgraded to Confirmed Uptrend
The market status has been upgraded to a Confirmed Uptrend, as the Nifty index has crossed its previous high. This means that the market is likely to continue to trend higher in the near term. However, it is important to note that the market is still volatile, and there could be some pullbacks along the way.
The distribution Day Count Stands at One
The distribution day count is a measure of the number of days in a row that the Nifty index has closed below its 20-day moving average. A distribution day count of one indicates that the market is still in a bullish phase. However, if the distribution day count increases and Nifty breaches its key support level, then the market status could be downgraded to an Uptrend Under Pressure.
Investors Should Take What the Market Gives Them
Investors should take what the market gives them and continue to monitor unfolding conditions. It is important to stay invested in quality stocks, as the market is likely to continue to trend higher in the near term. However, investors should also be prepared for some volatility along the way.
