StockEdge Morning Market Update - 6th September
The Nifty 50 lost 53 points over the day to close at 25,145. The index saw back-and-forth action throughout the day. Yesterday, we saw an opening high candle, but the index stayed lower for the remainder of the session, closing near the day's low. Interestingly, the opposite pattern occurred the day before. The Midcap and Smallcap indices were among the top gainers, indicating that while the broader index lacked momentum, stock-specific action was present in the markets. An interesting observation that validates this is the advance-decline ratio. While the Nifty 50 saw more declines than advances, the Nifty 500 experienced more advances than declines.
Technically, the market has once again entered a range, with a bullish bias. This is characteristic of a mature bull market, where time-based corrections occur, allowing overbought indicators to cool down before renewed momentum follows. For the past week, the index has remained in a narrow range. Although the indicators are slightly overbought on the charts, this consolidation is actually healthy. The 25,000 - 25,350 - 25,500 range has become the band in which the index is moving.
Nifty Bank outperformed the Nifty yesterday, but it is still trading within the 51,250 - 51,750 range.
To conclude: Staying stock-specific should be the approach while the index goes through its consolidation phase.
NIFTY
Bank Nifty
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