Global stock markets: Nikkei, +0.6%; Hang Seng, +0.3%; KOSPI, +0.7%

Yesterday, Nifty opened with moderate gains but dropped more than 100 points in the first hour itself. It traded in a narrow range during the day. However, good buying in the last hour helped Nifty close 20bps higher. Volume was comparatively lower. One distribution day expired yesterday as 25 trading days have passed and the day of liquidation has become irrelevant.

On the sectoral front, only Nifty IT, FMCG, and Media closed higher. Nifty Realty closed 1% lower, while Nifty Bank, Financial Services, and Auto closed 0.2–0.5% lower. Out of 2,189 stocks traded, 754 advanced, 1,097 declined, and the rest remain unchanged.

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

Dr. Reddy's Laboratories has launched Fulvestrant injection in the U.S. market.

Parag Milk Foods reported Q1 FY21 results yesterday. Revenue from operations was down 30.8% y/y to Rs 435.6 crore. It reported a profit of Rs 3.2 crore, compared with a profit of Rs 27.5 crore for the same quarter last year.

Amber Enterprises India got its board’s approval yesterday to issue QIP at a floor price of Rs 1,798.72 per share.

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%.

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