Nasdaq Fell 2.4%; SGX Nifty Indicates Flat Opening

Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 15,067, compared with Nifty’s close of 14,956 yesterday.

Market status: Confirmed Uptrend

Distribution days: Three

Global stock markets: Dow30, +1%; S&P 500,-0.5%; Nasdaq, -2.4%;Nikkei, +0.2%; Hang Seng, +0.9%; Kospi, -1.7%

Yesterday, Nifty gapped higher and moved above its 21-DMA. It made an intraday high of 15,109 but staged a reversal and closed below 15,000. Volume was comparatively lower. On the sectoral front, Nifty Bank was very volatile. It shed the opening hour gains and closed 0.2% higher. Nifty IT, Metal, and Pharma closed 0.3–1.0% higher. On the flip side, Nifty Auto, Financial Service, and FMCG closed 0.2–0.5% lower.

Last week, three distribution days expired due to aging and one was added on Friday, bringing the total count to three. The decrease in the distribution day count is a good sign. However, without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions. We may downgrade the status to an Uptrend Under Pressure if Nifty falls below its 50-DMA on higher volume and the distribution day count increases.

Key News

Dhunseri Ventures announced the divestment of its entire 25% stake in Tastetaria Foods in favor of its existing JV partner Choicest Enterprises (CEL) of Ambuja Neotia group.

Biocon (Nse)’s subsidiary Biocon Biologics (BBL) approved the allotment of 1,97,99,305 equity shares at an issue price of Rs 280.31 per share.

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, 29%; Rally Attempt, 4%; Uptrend Under Pressure, 63%; Downtrend, 4%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 42%; Rally Attempt, 4%; Uptrend Under Pressure, 50%; Downtrend, 4%.