Market status: Uptend Under Pressure
Distribution days: Six
Global stock markets: Dow30, -0.009%; S&P 500, -0.6%; Nasdaq, -2.0%; Nikkei, +0.4%; Hang Seng, +0.1%; Kospi, +0.2%
Yesterday, Nifty opened about 100 points lower, taking global cues. As the day progressed, the selling pressure intensified and the market closed near the day’s low with significant losses. In the process, the index closed below its 50-DMA, which it had reclaimed on Tuesday. Nifty escaped a distribution day as volume was lower compared with the previous session. In the broader market, Nifty Midcap declined 2% and Small cap closed 2.1% lower.
On the sectoral front, barring Nifty Pharma, the majority of sectors closed in the red. Financial stocks dragged the index the most. Nifty PSU Bank, Nifty Pvt Bank, and Nifty Bank were the top decliners, closing 2.5–3.0% lower. Similarly, Nifty Realty, Nifty Auto, and Nifty Metal were down in the range of 2.5–3.5%. The advance-decline ratio was in favor of decliners. Of 2,285 stocks traded, 457 advanced, 1,430 declined, and the rest remained unchanged.
Currently, the distribution day count stands at six. Though the index reclaimed its 50-DMA on Tuesday, it failed to sustain above it and breached the same yesterday. We will change the status to a Downtrend, if one more distribution day is added or if Nifty fails to reclaim its 50-DMA and market leaders show signs of deterioration in their price actions.
Adani Road Transport won an order worth Rs 1,040 crore from NHAI in Telangana. The project is related to four laning of NH-365A from Kodad to Khammam under Bharatmala Pariyojana on Hybrid Annuity Mode.
Iifl Finance raised Rs 670 crore by issuing bonds. The bonds have 87-month tenure and coupon rate of 9.6-10%.
Jubilant Foodworks has entered into an exclusive agreement with PLK APAC Pte Ltd, a subsidiary of Restaurant Brands International Inc. This agreement enables the company to license franchisees to develop, establish, own and operate Popeyes Restaurants in India, Bangladesh, Nepal, and Bhutan.
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, 30%; Rally Attempt, 12%; Uptend Under Pressure, 50%; Downtrend, 8%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 56%; Rally Attempt, 4%; Uptend Under Pressure, 36%; Downtrend, 4%.