Stock-Specific Activity Will Continue

The equities continued to be nervous before the expiry. The Nifty declined by 73.75 points or 0.30 per cent. The Media index is the top gainer with 1.04 per cent. PSU Bank, India Defence indices up by 0.97 per cent and 0.91 per cent, respectively. The FMCG is the top loser with 1.49 per cent. The Consumption, Auto, Pharma, Metal, Commodities, and Consumer Durables indi-ces declined by over 0.50 per cent. The India VIX is down by 2.89 per cent to 18.00. The India VIX is down by 2.89 per cent to 18.00. The market breadth is neutral as 1462 advances and 1395 declines. About 51 stocks hit a new 52-week high, and 93 stocks traded in the upper cir-cuit. ITC, LICI, Belrise, IFCI, and HDFC Bank were the top trading counters in terms of value. The Nifty formed an inside bar. Another day of massive volume indicates a serious distribution is happening. It recorded another distribution day. Currently, the Nifty holds eight distribution days, which is the highest in recent times. Even though the index moved in just a 127-point range during the day, the price action is not giving confidence to take long positions. It is still above the 20 DMA. But, closed below the 8 EMA. As the index closed near day’s low, the sell-ing pressure was at its high. The Nifty must close above 25116 to continue the uptrend. The 20 DMA is at 24648, which is the crucial support. Last Thursday’s low of 24462 is another crucial support. The MACD histogram shows a significant increase in the bearish momentum. Expect some impulse move on the downside, post expiry. The next week will be very crucial for the market. We will be able to know whether the sideways consolidation will continue or any rever-sal with a strong decline. It is time to exit long positions in the index and wait for an opportuni-ty. Stock-specific activity will continue.

(The author is partner, Wealocity Analytics, Sebi-registered research analyst, chief mentor, Indus School of Technical Analysis, financial journalist, technical analyst and trainer)