Nifty above 16600. Buy or sell?

Nifty above16600. Buy or sell?

Nifty above 16600, is it time to buy or sell? After a slow grind and two consecutive days of losses, the market closed in green, led by IT, metals, index heavy-weight Reliance and other oil & gas shares.

The recently reported high-frequency numbers like GST collection, rise in exports, manufacturing PMI, credit growth, and Capex suggest that the economy is keeping up well. These numbers are positive. However, this could also be because of the low base effect.

Meanwhile, FMCG sector volumes dipped 4.1% in the March quarter, and HDFC hiked home loan rate for the third time this month; other banks also have raised MCLR rates.

The Nifty 50 was up 105 points or 0.64 per cent before closing at 16628. Further, it recorded an intraday high of 16646 and a low of 16443. The Nifty closed near the day’s high price and stayed above the 20-day simple moving average.

The market breadth was positive, and the advance-decline ratio was 1.60. Further, the volatility index was down by 2.52 per cent and closed at 20.32. Meanwhile, the FIIs were net sellers today as well.

NIFTY – DAILY MARKET ACTION
Advancers – 1303
Decliners – 814
52Wk High – 29
52Wk Low – 22
High Band Hitters – 126
Low Band Hitters – 70
200d SMA – 17268
50d SMA – 16885
20d SMA – 16221

Top Gainers and Losers

Reliance, Bajaj Finserv, Sun Pharma, TCS, and HCL Tech were the top gainers on the Nifty 50, gaining between 2 per cent and 3.6 per cent.

TOP GAINERS
RELIANCE +3.60%
BAJAJFINSV +3.40%
SUNPHARMA +2.66%
TCS +2.08%
HCLTECH +2.07%

Meanwhile, Apollo Hospital, Hero Motors, Eicher Motors, HDFC, and Power grid were the top losers on the Nifty 50, losing between 1 per cent and 5 per cent.
View the list of all the Nifty 50 contributors.

TOP LOSERS
APOLLOHOSP –4.98%
HEROMOTOCO –3.45%
EICHERMOT -1.68%
HDFC –1.58%
POWERGRID -1.22%

Buy or Sell –Sectors & Broader Indices

A majority of sectoral indices closed in the green. The gainers were IT, metal, Oil & Gas, PSU Bank and realty. Meanwhile, auto and financial services were the losers.
The broader indices followed benchmark indices. Nifty Midcap 50 was up 0.51 per cent, and Small-cap 50 was up 0.63 per cent.

Nifty Sectors – Notable Action
Oil & Gas +2.28%
IT +1.82%
Metal +1.14%
Auto -0.62%
Financial Services -0.33%

Looking Ahead – Nifty Bulls

Is it time to Buy or Sell? The topsy-turvy ride and chop around the gap down of May 6 and May 9 continues. Today, the market moved between gains and losses, remained volatile and closed higher. 

Daily Pivots

Read our previous -Daily Insights- here
Is there any clear trend?
Bulls Indecisive
Bulls Repose Faith

As noted yesterday, the gainers and losers are changing. The market action is down to stock-specific and beaten down sectors. It’s a dull market because of low volumes and waiting for triggers. 16500 to 16700 is the Nifty trading range for tomorrow.

The Nifty has gained about 276 points during the week. Further, it is likely to close in the green for the third consecutive week.

This article is only for educational purposes and is not an investment advice.