At 8:00am IST, the SGX Nifty Futures was trading at 14,381, compared with Nifty’s close of 14,281 yesterday.
Market status: Confirmed Uptrend
Distribution days: Three
Global stock markets: Dow 30, -0.6%; S&P 500, -0.7%; Nasdaq, -0.9%; Nikkei, +1.4%; Hang Seng, +2.2%; Kospi, +2.3%
Yesterday, markets were under pressure in the morning session, with the Nifty down more than 1.0% and Midcap index down 1.5%. During the day, Nifty attempted recovery from losses but failed to do so. As volume was a little lower compared with Friday’s session, we did not mark yesterday’s session as a distribution day. Among the Nifty50 stocks, Tata Motors, Tata Steel, and ONGC closed ~5% lower. On the flip side, a 1–2% gain in Reliance, Titan, and HDFC Bank saved indices from declining further. On the sectoral front, Nifty Metal was down ~4.5%, while Nifty Auto, IT, Financial Services, Pharma, and Realty closed 2–3% lower.
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. If a pullback/consolidation happens, it will be crucial for Nifty to hold its 21-DMA. 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 as rise in distribution days can halt the uptrend.
Icici Lombard General Ins Co, Alembic Pharmaceuticals, and Larsen & Toubro Infotech will report their Q3 earnings today.
Indiamart Intermesh posted Q3 FY21 earnings. PAT was up 29% y/y to Rs 80 crore, while revenue rose 5.1% y/y to Rs 174 crore. Margin stood at 50.6% for the quarter.
Mindtree (Nse) posted Q3 FY21 earnings. Consolidated PAT was up 28.7% q/q to Rs 326.5 crore, while revenue rose 5.1% q/q to Rs 2,023.7 crore. Margin expanded 230bps to 19.6%.
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, 66%; Rally Attempt, 0%; Uptrend Under Pressure, 34%; Downtrend, 0%.