At 8:00am IST, the SGX Nifty Futures was trading at 13,547, compared with Nifty’s close of 13,478 yesterday.
Market status: Confirmed Uptrend
Distribution days: Three
Global stock markets: Dow30, -0.2%; S&P500, -0.1%; Nasdaq, +0.5%; Nikkei, -0.5%; Kospi, +1.1%; Hang Seng, +0.9%
Nifty opened lower yesterday morning and slipped further in the opening hour. However, it found support near 13,400 and traded near it during the day. In the last hour, Nifty ended off-lows and closed just 0.4% lower. As volume was higher compared with the previous session, we considered it as a distribution day. Broader markets underperformed as Midcap and Smallcap indices declined 0.5–0.8%. Nifty is trading 3.5% and 9.2% above its 21- and 50-DMA.
On the sectoral front, Nifty FMCG outperformed and closed 2.8% higher. Nifty Bank, Auto, and Financial Services closed 0.5–1.0% lower, while Nifty IT and Metal closed relatively flat. Market breadth was skewed toward decliners. Of 2,214 stocks traded, 723 stocks advanced, 1,173 declined, and the remaining stocks unchanged.
With leadership broadening and indices above relevant intermediate term-moving averages, we will continue to look for leadership-quality growth names to form entry points. After a strong rally, pullback/consolidation (if any) 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. On the flip side, tracking distribution days is crucial. An accumulation of distribution days can halt the uptrend.
Yesterday, the FIIs bought equities worth Rs 2,259 crore, while the DIIs sold equities worth Rs 2,275 crore.
Ircon International Limited has received an order worth Rs 900 crore from NHAI.
Jash Engineering received orders worth Rs 20.6 crore in November.
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, 92%; Rally Attempt, 0%; Uptrend Under Pressure, 8%; 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%.