At 8:00am IST, the SGX Nifty Futures was trading at 14,132, compared with Nifty’s close of 14,018 on Friday.
Market status: Confirmed Uptrend
Distribution days: Two
Global stock markets: Nikkei, -0.5%; Hang Seng, +0.4%; Kospi, +1.7%
Last week, Nifty made higher highs in the daily chart and hit 14,000. The index started the week on a positive note and remained bullish for three consecutive days. However, on Thursday, the index was volatile amid monthly/weekly expiry and closed flat. On Friday, Nifty opened about 15 points higher than the previous close. Though the index remained volatile through the day, it traded in a narrow range and closed with minor gains. Further, one distribution day expired Friday, taking the count to two. On the broader market, Nifty Midcap and Smallcap closed 3.0% and 3.9% higher, respectively.
On the sectoral front, all the sectors closed in the green. Nifty PSU Bank staged a reversal with a gain of 6.2%. Further, Nifty Realty (+5.7%) gained the most followed by Nifty Metal and Nifty Auto, which advanced 3.6% and 3.3%, respectively. On Friday, the advance-decline ratio was inclined toward advancers . Of the 2,231 stocks traded, 1,294 advanced, 576 declined, and the remaining were unchanged.
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.
Eicher Motors Royal Enfield sales for December increased 37% m/m basis to 68,995 units.
Tata Motors December sales decreased 4% y/y to 32,869 units. For the December quarter, sales increased 22.2% y/y to 158,215 units.
Cadila Healthcare has received the DCGI approval to initiate Phase-3 clinical trials of its COVID-19 vaccine ZyCoV-D.
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%.