At 8:00 am IST, the SGX Nifty Futures was trading at 10,030, compared with Nifty’s close of 10,092 yesterday.
Market status: Confirmed Uptrend
Global stock markets: Dow 30, -0.2%; S&P 500, +0.1%; Nasdaq, +0.3%; KOSPI, -0.6%; Nikkei, +0.1%; Hang Seng, -0.04%; Shanghai Composite, +0.5%.
Yesterday, after opening on a flat note, Nifty advanced as the session progressed. It edged closer toward its 100-DMA (10,117). Volume was lower than Wednesday’s session. The broader market indices underperformed Nifty. On the sectoral front, barring Nifty Pharma (-0.02%), all the sectoral indices ended in the green.
It is crucial for the index to retake its 100-DMA for yesterday’s rally to continue. On the other hand, if we see Nifty add more distribution days, breaching key moving averages, and begin to see leaders falter at support, we will likely shift the market status to an Uptrend Under Pressure.
The beauty of our CAN SLIM method is that we need not "expect," "hope," or "wish for" with respect to market action. We will take what the market gives us and continue to monitor unfolding conditions. We always look for stocks with strong relative strength. But investors should understand that it is not prudent to blindly buy stocks that have a high relative strength or simply because they have been performing well. This is the essence of momentum investing, and it can get you into trouble. Rather, one should base buying decisions on sound fundamental and technical analysis. Only invest in stocks that have strong fundamentals (i.e., good sales, earnings, and margins, among others) and that are breaking out of sound base structures on heavy volume.
Reliance Industries: The Public Investment Fund (PIF), one of the world’s largest sovereign wealth funds, announced to buy a 2.32% stake in Jio Platforms for Rs 11,367 crore.
Cipla expanded its partnership with Roche Pharma India to further improve access to key oncology medicines.
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, 88%; Rally Attempt, 0%; 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, 50%; Rally Attempt, 0%; Uptrend Under Pressure, 50%; Downtrend, 0%.