SGX Nifty Indicates Positive Opening; Government to Sell 10% Stake in HAL

Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 11,585, compared with Nifty’s close of 11,549 yesterday.

Market status: Confirmed Uptrend

Global stock markets: Dow 30, +0.3%; S&P 500, +1%; Nasdaq, +1.7%; Nikkei, -0.5%; Hang Seng, -1%; KOSPI, -1%

Yesterday, Nifty gapped higher for the fourth consecutive session. After opening above 11,500, it remained volatile and traded mostly sideways in the first half of the trading session. However, in the second half, it showed directional moves and closed the day near 11,550, holding meaningful gains. Volume was on the higher side compared with the previous session. Broader markets continued to maintain the positive momentum. Nifty Midcap and Smallcap closed with gains of 0.5% and 1.1%, respectively. FIIs’ net buying was at Rs 1,581 crore, while DIIs’ net selling was Rs 1,194 crore. Nifty is trading 2.5% and 5.6% above its rising 21- and 50-DMA, respectively.

On the sectoral front, it was a mixed action. On the positive side, Nifty Media advanced the most with a gain of 2.5%. Further, Financial stocks continued to remain bullish for three consecutive sessions with Nifty Pvt Bank and Nifty Bank closing more than 1.4% higher. On the flip side, Nifty FMCG and Nifty Pharma were down 0.2% and 0.1%, respectively.

The Indian market remains in a Confirmed Uptrend. Despite the rise in the distribution day count on Nifty, we remain positive on the general market as the broader market is gaining strength. We would like to see fresh names flexing their muscles for a sustainable rally. We do think it is important to be selective in this environment and we would remain disciplined with entries, requiring a basing period before establishing fresh positions. We will continue to monitor the behavior of the market and keep an open mind as to how it unfolds.

Key News

Hindustan Aeronautics: The government to sell up to 10% equity shares at a face value of Rs 10 each via OFS on August 27 for non-retail investors and on August 28 for retail investors and non-retail investors.

Indraprastha Gas: The company reported Q1 results. Sales was down 59% y/y and q/q, while PAT was down 85% y/y and 87% q/q. EBITDA margin was down to 13.1% versus 22.7% y/y and 24.3% q/q.

-Key Q1 results today: IDFC Nmdc, and Pnc Infratech

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, 50%; Rally Attempt, 12%; Uptrend Under Pressure, 38%; Downtrend, 0%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 46%; Rally Attempt, 0%; Uptrend Under Pressure, 50%; Downtrend, 4%.