Asian Markets Trade in the Green; SGX Nifty Indicates Positive Opening

Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 12,990, compared with Nifty’s close of 12,927 yesterday.

Market status: Confirmed Uptrend

Distribution Day: One

Global stock markets: Dow 30, +1.1%; S&P, +0.6%; Nasdaq, -0.1%; Nikkei, +2.8%; Kospi, +0.7%; Hang Seng, +0.1%

Yesterday, after opening around 100 points higher, Nifty quickly saw selling pressure and made an intraday low of 12,825. It made a new all-time high of 12,968.9 intraday. There was volatility throughout the session. Buying was observed at the lower levels and Nifty closed 100 points above its day’s low. On the sectoral front, the reaction was mixed, and the majority of indices ended in the green. Nifty IT (+2.8%) advanced the most, followed by Pharma (+1.8%) and Metal (+1.2%).

We are in a Confirmed Uptrend but need to be prudent and cautious while adding fresh positions, as Nifty is currently trading ~20% above its 200-DMA, which is rare. We might expect some pullback in the market. However, a small pullback/consolidation is a constructive sign if Nifty holds its 21-DMA. It is advised to closely review the existing positions and book partial profits in stocks that are extended from their moving averages. We will look for leadership among some good stocks to push the market up. On the flip side, tracking distribution days is crucial. An accumulation of distribution days can halt the uptrend.

Key News

Exide Industries (Nse) increased its shareholding to 80.2% in its subsidiary (joint venture company) Exide Leclanche Energy through an investment of Rs 33.17 crore.

Wockhardt’s promoter entity Themisto Trustee Company Pvt. Ltd. released a pledge on 14 lakh equity shares.

Ingersoll-Rand (Nse) received a proposal from Ingersoll-Rand Inc. to sell up to 14,25,798 equity shares in the company via offer for sale on November 24–25.

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, 72%; Rally Attempt, 8%; Uptrend Under Pressure, 20%; Downtrend, 0%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 88%; Rally Attempt, 0%; Uptrend Under Pressure, 12%; Downtrend, 0%.