Mindtree Delivers Stellar Q3 Numbers; ICICI Lombard General Insurance, Alembic Pharmaceuticals

Market status: Confirmed Uptrend

Distribution days: Three

Global stock markets: Dow 30, -0.6%; S&P 500, -0.7%; Nasdaq, -0.9%; Nikkei, +1.4%; Hang Seng, +2.2%; Kospi, +2.3%

Yesterday, markets were under pressure in the morning session, with the Nifty down more than 1.0% and Midcap index down 1.5%. During the day, Nifty attempted recovery from losses but failed to do so. As volume was a little lower compared with Friday’s session, we did not mark yesterday’s session as a distribution day. Among the Nifty50 stocks, Tata Motors, Tata Steel, and ONGC closed ~5% lower. On the flip side, a 1–2% gain in Reliance, Titan, and HDFC Bank saved indices from declining further. On the sectoral front, Nifty Metal was down ~4.5%, while Nifty Auto, IT, Financial Services, Pharma, and Realty closed 2–3% lower.

With leadership broadening and indices above relevant intermediate-term moving averages, we will continue to look for leadership-quality growth names to form entry points. If a pullback/consolidation happens, it will be crucial for Nifty to hold its 21-DMA. It is advised to closely review the existing positions and book profits in stocks that are extended from their moving averages and showing technical weakness. Also, tracking distribution days is crucial as rising in distribution days can halt the uptrend.