At 8:00am IST, the SGX Nifty Futures was trading at 11,958, compared with Nifty’s close of 11,930 on Friday.
Market status: Rally Attempt
Global stock markets: Dow 30, -0.1%; S&P, +0.3%; Nasdaq, +0.4%; Nikkei, -0.1%; Hang Seng, +0.5%
Nifty opened with a cut Friday morning. It remained in negative territory during the day and traded range bound. It found resistance near Thursday’s close of 11,938. The good part is Thursday’s low was not breached and volume was comparatively lower. Nifty is trading 3.6% and 11.1% above its 50- and 200-DMA, respectively.
On the sectoral front, there was a notable gain only in Nifty Metal (+0.8%). Nifty FMCG and Realty managed to close 10–20bps higher. On the flip side, Nifty Pharma, Bank, and IT closed 50–80bps lower. The broader market outperformed the benchmark indices. Of 2,216 stocks traded, 1,016 advanced, 812 declined, and the rest remained unchanged.
Looking forward, we would prefer to see a follow-through day before shifting the market to a Confirmed Uptrend. (A follow-through day is a solid up session, generally a 1.5% or higher gain, with volume being higher than the previous day). Should this occur, the focus will be on ideas that show the best relative strength with good accumulation. Stocks that recover the quickest tend to lead the next run. On the flip side, if Nifty breaches its recent low of 10,790, the market will be moved back to a Downtrend.
Sbi Life Insurance Co, Torrent Pharmaceuticals, Maha.& Maha.Finl.Svs., and Kotak Mahindra Bank(Nse) will report their Q2 FY21 results today.
Polycab India reported Q2 FY21 results. Consolidated revenue from operations decreased 5.7% y/y to Rs 2,113.6 crore, PAT increased 14.3% to Rs 221.5 crore.
Persistent Systems reported Q2 FY21 results. Consolidated revenue from operations increased 13.9% y/y to Rs 1,007.7 crore, while PAT grew 18.5% to Rs 101.9 crore.
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, 15%; Rally Attempt, 10%; Uptrend Under Pressure, 50%; Downtrend, 25%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 20%; Rally Attempt, 5%; Uptrend Under Pressure, 65%; Downtrend, 10%.