At 8:00am IST, the SGX Nifty Futures was trading at 13,966, compared with Nifty’s close of 13,818 yesterday.
Market status: Uptrend Under Pressure
Distribution days: Five
Global stock markets: Dow 30, +1%; S&P 500, +1%; Nasdaq, +0.5%; Nikkei, +0.4%; Hang Seng, +0.1%; Kospi, -0.1%
Yesterday, Nifty gapped lower and remained weak throughout the session. On the downside, Nifty found support near its 50-DMA. Though Nifty closed 1% lower, volume was less compared with yesterday. So, we did not mark yesterday’s session as a distribution day. Selling pressure was comparatively less in the broader market. Overall advance-decline ratio was 1:1. On the sectoral front, barring Nifty Bank (+0.2%), which ended higher, led by a 5%+ gain in Axis Bank, all other sectoral indices closed in the red. Nifty FMCG, IT, and Realty closed around 2% lower. Nifty Pharma, Metal, and Financial Services closed 0.5–1.0% lower.
Recently, we downgraded the market status to Uptrend Under Pressure as it breached its 21-DMA and due to elevated distribution. We will continue to monitor the market and look for signs of strength or weakness. It is advised to closely review the existing positions and book profits in stocks that are extended from their moving averages and/or showing technical weakness.
Cummins India (Nse) posted Q3 FY21 earnings. PAT was up 20.2% y/y to Rs 240.3 crore, while revenue fell 1.7% y/y to Rs 1,431 crore. Margin surged 210bps to 16.9%.
Pidilite Industries(Nse) posted Q3 FY21 earnings. PAT advanced 29% y/y to Rs 446.4 crore, while revenue was up 19.3% y/y to Rs 2,299 crore. Margin surged 390bps to 27.9%.
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, 58%; Rally Attempt, 0%; Uptrend Under Pressure, 42%; Downtrend, 0%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 29%; Rally Attempt, 0%; Uptrend Under Pressure, 71%; Downtrend, 0%.