At 8:00am IST, the SGX Nifty Futures was trading at 13,747, compared with Nifty’s close of 13,634 on Friday.
Market status: Uptrend Under Pressure
Distribution days: Six
Global stock markets: Dow 30, -2.0%; S&P 500, -1.9%; Nasdaq, -2.0%; Nikkei, +0.9%; Hang Seng, +1.2%; Kospi, +1.4%
Last week, Nifty was down in all the five trading sessions. It breached its 21-DMA on Monday, and the selling intensified with high volatile moves as the week progressed. On Friday, it breached its 50-DMA as it fell sharply in the last hour of the session. The Union Budget will be presented today. As with the big events, volatility index India VIX rose 4% to more than 25. On Friday, all the sectoral indices closed lower except financial related sectors.
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.
Castrol India, Coromandel International, and Zydus Wellness will report their Q3 earnings today.
Idfc First Bank posted Q3 FY21 earnings during the weekend. NII was up 13.7% y/y to Rs 1,743.9 crore. It reported a profit of Rs 129.5 crore compared with a loss of Rs 1,638.9 crore.
Icici Bank posted Q3 FY21 earnings during the weekend. NII advanced 16% y/y to Rs 9,912 crore. PAT was up 19% to Rs 4,939 crore.
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, 38%; Rally Attempt, 0%; Uptrend Under Pressure, 54%; Downtrend, 8%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 16%; Rally Attempt, 0%; Uptrend Under Pressure, 84%; Downtrend, 0%.