Market Preview
At 8:00am IST, the SGX Nifty Futures was trading at 11,427, compared with Nifty’s close of 11,528 yesterday.
Market status: Uptrend Under Pressure
Global stock markets: Dow 30, -2.8%; S&P 500, -3.5%; Nasdaq, -5.2%; Nikkei, -1.1%; Hang Seng, -1.4%; KOSPI, -1.7%
Yesterday, Nifty opened with moderate gains and traded in a narrow range (11,508–11,584) during the day to close flat. Volume was comparatively higher. One distribution day expired yesterday as 25 trading days have passed and the day of liquidation has become irrelevant. In the broader market, Nifty Midcap and Nifty Smallcap closed 0.9% and 0.7% higher, respectively.
On the sectoral front, there was mixed action. Nifty IT, Auto, FMCG, and Pharma were leading and closed 0.8–1.5% higher. On the flip side, Nifty Bank, Financial Services, and Metals were lagging and closed 0.5–1.5% lower.
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
Guj.Ste.Fert.& Chems. resumed methanol plants with a daily installed capacity of 525MT.
Jubilant Industries reported Q1 FY21 results yesterday. Revenue from operations was down 37.9% y/y to Rs 94.3 crore. It reported a loss of Rs 3.1 crore, compared with a profit of Rs 9.6 crore for the same quarter last year.
Creditaccess Grameen Ltd got the board’s approval to raise Rs 1,000 crore via equity.
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, 42%; Rally Attempt, 4%; Uptrend Under Pressure, 50%; Downtrend, 4%.
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