Market Preview
At 8:00am IST, the SGX Nifty Futures was trading at 11,409, compared with Nifty’s close of 11,372 Friday.
Market status: Confirmed Uptrend
Global stock markets: Dow 30, +0.7%; S&P 500, +0.3%; Nasdaq, +0.4%; Nikkei, +0.4%; Hang Seng, +1.5%; KOSPI, +1%
Last week, Nifty after testing its 21-DMA and staged an upside reversal from there. It closed the week with a gain of 1.7%. On the sectoral front, except Nifty Pharma, all other sectoral indices closed in the green. Nifty Media continued to lead the rally with a gain of 12.5% followed by Nifty Realty which advanced 8.2% during the week. Nifty PSU Bank and Nifty Auto gained 3–4%. Nifty Midcap (+3.7%) and Smallcap (+5.4%) outperformed the major index. On Friday, FIIs’ net buying was at Rs 410 crore, while DIIs’ net selling was Rs 250 crore. Nifty is trading 1.4% and 5% above its rising 21- and 50-DMA, 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
Union Bank Of India has reported a profit of Rs 332.74 crore for Q1 FY21, after the merger with Corporation Bank and Andhra Bank. Net interest income increased 154% y/y to Rs 6,403 crore. GNPA as a percentage of gross advances rose 80bps q/q to 14.95%. NNPA declined 52bps q/q to 4.97%
-According to RBI’s data, India’s foreign exchange reserves declined $2.93B to $535.25B for the week ended August 14.
-Key Q1 results today: Lic Housing Finance(Nse), Irb Infr.Developers(Nse) and Nocil
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%.
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