Market status: Uptrend Under Pressure

Distribution days: Seven

Global stock markets: Dow30, -0.3%; S&P 500, -0.1%; Nasdaq, -0.1%; Nikkei, -0.1%; Kospi, +0.2%

Yesterday, Nifty opened 100 points higher and advanced further to make an intraday high of 14,779. Similar to previous few sessions, it succumbed to selling pressure and turned negative intraday. Some buying in the last few hours helped the index close with a gain of 0.3%. Of Nifty50 stocks, 62% of the stocks advanced. Barring Nifty Media and Financial-related sectors, all the sectoral indices closed in the green. Nifty Pharma (+1.8%) and Metal (+1.4%) were the top advancers. The advance-decline ratio was in favor of advancers. Of 2,255 stocks traded, 1,157 advanced, 736 declined, and the rest remained unchanged. FIIs net sold shares worth Rs 1,092 crore, while DIIs net bought shares worth Rs 416 crore.

Nifty breached its 21- and 50-DMA on Monday, after hovering around its key moving averages in the past few weeks. Index breaching its moving averages is a sign of weakness. Yesterday, it found resistance around its 50-DMA. We will change the status to a Downtrend, if Nifty doesn’t retake its 50-DMA and if market leaders show signs of deterioration in their price actions.

Key News

Tata Steel achieved the highest ever quarterly crude steel production of 4.75M tonnes with 3% q/q growth in Q4 FY21.

Reliance Industries’s Jio Infocomm has entered into a definitive agreement with Bharti Airtel to acquire the right to use spectrum in 800MHz band in Andhra Pradesh, Delhi, and Mumbai circles through spectrum trading.

-In Gujarat, night curfew is imposed between 8pm to 6am from today till April 30.

-IMF increased FY22 real GDP growth estimates by 100bps (from January) to 12.5%. However, there is a severe downside risk to the growth outlook for the economy if COVID-19 cases continue to increase.

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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Author's Bio: 

Marketsmith India, One stop solution for all your Stock Market needs. Get stock market ideas and stock predictions all at one place. A proprietary tool by William O'Neil India following the CANSLIM method of investing.