Distribution Day Expires Today; SBI Mutual Fund Reduces Stake in JK cement

Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 13,857, compared with Nifty’s close of 13,749 on Friday.

Market status: Confirmed Uptrend

Distribution days: Four

Global stock markets: Dow30, +0.2%; S&P 500, +0.4%; Nasdaq, +0.3%; Nikkei, +0.4%; Kospi, +0.6%; Hang Seng, +0.3%

Nifty was on a roller-coaster ride last week and posted a minor loss after registering gains for seven straight weeks. Nifty started the week on a negative note and witnessed significant profit-booking on Monday. However, the index posted a sharp reversal on Tuesday and turned bullish for the rest of the week. The index was able to recover most of its losses and closed only 0.1% lower for the week. In the broader market, Nifty Midcap and Smallcap lost 1.6% and 0.8%, respectively. The index has four distribution days with one day set to expire today.

On the sectoral front, Nifty IT (+3.2%) advanced the most. It was followed by Nifty Pharma (+1.2%) and FMCG (+0.04%). Rest all other indices closed in the red for the week. PSU Bank (-3.5%) continues to decline the most, followed by Media (-3.2%) and Metal (-2.3%). On Friday, the advance-decline ratio was inclined toward the advancers. Of the 2,233 stocks traded, 708 advanced, 1,188 declined, and the remaining were unchanged.

Looking ahead, we would like the index to hold its 21-DMA and trade above it. It is advised to closely review the existing positions and book profits in stocks that are extended from their moving averages and showing technical weakness. Also, tracking distribution days is crucial. If the distribution day is elevated further, it can halt the uptrend.

Key News

Lupin (Nse) received USFDA’s tentative approval for the generic of Jublia solution.

Central Bank Of India to sell its entire 64.4% stake in Cent Bank Home Finance to Centrum Housing Finance.

SBI mutual funds reduced its stake in Jk Cement to 4.97% from 5.98% via market sale.

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, 84%; Rally Attempt, 4%; Uptrend Under Pressure, 12%; Downtrend, 0%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 54%; Rally Attempt, 0%; Uptrend Under Pressure, 46%; Downtrend, 0%.