Market status: Uptend Under Pressure
Distribution days: Six
Global stock markets: Dow30, -0.3%; S&P 500, -0.3%; Nasdaq, -0.1%; Nikkei, -0.7%; Hang Seng, -0.5%; Kospi, -0.1%
Yesterday, Nifty had a gap up opening of about 120 points and kept its gaining momentum intact throughout the session. It formed higher highs and higher lows in the hourly chart and closed the day holding significant gains. In the process, the index reclaimed its 21- and 50-DMA. Volume was higher compared with the previous session. In the broader market, Nifty Midcap advanced 1.7% and Smallcap closed 1.3% higher.
On the sectoral front, barring Nifty Realty, all the sectors closed in the green. Nifty IT (+3.1%) was the major gainer for the day. Similarly, Nifty Pharma, Nifty Metal, and Nifty FMCG closed higher in the range of 2.0–3.0%. FIIs net buying was Rs 770 crore and DIIs net buying was Rs 2,181 crore.
The index reclaiming its key moving averages indicates strength in the market. From here, we would like the index to hold its key moving averages and trade above it. On the flip side, we will change the status to a Downtrend, if one more distribution day is added or if Nifty breaches its key moving averages and if market leaders show signs of deterioration in their price actions.
Tata Power bagged an order to develop a 60MW solar project for Gujarat Urja Vikas Nigam.
RBL Bank will provide banking infrastructure to the U.K.-based fintech Tide's India platform, which is focused on the SME segment.
Tata Consultancy Svs. unveiled a new brand statement, ‘Building on Belief’, to articulate its mission and relationship with customers as it embarks on its next decade of transformation-led growth.
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, 30%; Rally Attempt, 12%; Uptend Under Pressure, 52%; Downtrend, 6%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 52%; Rally Attempt, 4%; Uptend Under Pressure, 40%; Downtrend, 4%.