Global stock markets: Dow 30, -0.6%; S&P 500, -0.8%; Nasdaq, -1.3%; Nikkei, -0.3%; Hang Seng, +0.1%; KOSPI, +0.5%

Last week, Nifty started on a negative note, fell more than 2.2%. However, it found support at its 21-DMA on Monday. In the next four sessions, the volume of shares traded dried up relatively. On Friday, it succumbed to selling pressure, taking cues from global markets. Selling was seen across the sectors, with Maruti Suzuki India (+1.7%) being the only advancer for the day. Friday’s action qualified as a distribution day as the fall was more than 0.2% on volume higher than the previous session. During the last week, the index added two distribution days (Monday and Friday). However, the distribution day registered on July 30 expired on Thursday. Overall, it has five distribution days.

During the week, all the sectoral indices closed lower, led by Nifty PSU Bank (-8.9%) and other financial related sectors. Realty (-5.5%) and Energy (-3.4%) also succumbed to selling pressure.

The market status was recently changed to an Uptrend Under Pressure. We will be slightly cautious while initiating fresh long positions. We will change the status to a Downtrend if two or three more distribution days are added or if Nifty breaches its 50- and 200-DMA. On the flip side, the status will be shifted back to a Confirmed Uptrend if Nifty retakes the 11,795 level (high made during the recent rally).

Key News

Info Edge (India) (Nse), General Insurance Corp Of India and R P P Infra Projects will report their Q1 FY21 results today.

Repco Home Fin. reported Q1 FY21 results yesterday. Revenue from operations was up 2.9% y/y to Rs 337.71 crore. It reported a profit of Rs 69.50 crore, compared with a profit of Rs 67.4 crore for the same quarter last year.

National Aluminium (Nse) reported Q1 FY21 results yesterday. Revenue from operations was down 33.8% y/y to Rs 1,380.6 crore. It reported a profit of Rs 16.7 crore, compared with a profit of Rs 98 crore for the same quarter last year.

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, 54%; Rally Attempt, 8%; Uptrend Under Pressure, 30%; Downtrend, 8%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 17%; Rally Attempt, 0%; Uptrend Under Pressure, 70%; Downtrend, 13%.

Buy Watchlist:

Bharti Airtel, Biocon (Nse), Balkrishna Industries, Sun Pharm.Industries, Multi Cmod.Ex.Of India, Indian Energy Exchange, Infosys, Tata Consultancy Svs., Escorts, and Aurobindo Pharma

Check out MarketSmith India for more.

Author's Bio: 

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