Market status: Downtrend

Global stock markets: Dow30, -0.9%; S&P 500, -0.9%; Nasdaq, -0.9%; Nikkei, -0.7%; Kospi, +0.1%

Yesterday, Nifty started the session on a negative note and made an intraday low of 14,151 within the first minute. But as the session progressed, it turned into positive territory on strong buying and continued to edge higher with volatility. On the downside, it breached Monday’s low, so the correction low was reset to yesterday’s low of 14,151. However, as Nifty closed in the upper half, yesterday’s session was considered as Day 1 of an attempted rally.

On the sectoral front, there was mixed action. Financial-related sectors were the top gainers. On the flip side, Nifty FMCG, Pharma, and IT closed 0.2–0.7% lower.

On Monday, we had changed the market status to a Downtrend from a Rally Attempt as Nifty breached its previous correction low (14,248). Looking forward, we will shift the market to a Rally Attempt if Nifty establishes a bottom and stays above yesterday’s low (14,151) for two more sessions. From there, we would prefer to see a follow-through day before shifting the market back to a Confirmed Uptrend. Should this occur, the focus will be on ideas breaking out of early-stage base patterns and showing best relative strength with good accumulation.

Key News

Hcl Technologies (Nse) and Maha.& Maha.Finl.Svs. will declare Q4 FY21 results today.

Cyient Ltd (Nse) declared its Q4 FY21 results. PAT grew 8% q/q to Rs 103.4 crore while revenue grew 4.7% q/q to Rs 1,093.2 crore.

Tata Elxsi (Nse) declared its Q4 FY21 results. PAT grew 45% y/y to Rs 119 crore while revenue grew 18% y/y to Rs 518 crore.

O’Neil Market Condition Report

For the 24 emerging markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 30%; Rally Attempt, 12%; Uptrend Under Pressure, 52%; Downtrend, 6%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 65%; Rally Attempt, 10%; Uptrend Under Pressure, 25%; Downtrend, 0%.

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