SGX Nifty Indicates a Muted Opening; Berger Paints and Mahanagar Gas to Announce Results Today

Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 15,173, compared with Nifty’s close of 15,115 yesterday.

Market status: Confirmed Uptrend

Distribution days: Six

Global stock markets: Dow 30, +0.8%; S&P 500, +0.7%; Nasdaq, +0.9%; Nikkei, +0.4%; Hang Seng, +0.1%; Kospi, +1.0%

Nifty opened 135 points higher and maintained the gaining momentum to trade toward the day's high of 15,160. Though it witnessed minor profit booking in the last hour, the index closed the day holding solid gains. Also, it continues to make a fresh high. Volume was lower compared with Friday’s session. Broader indices continued their outperformance. Both Midcap and Smallcap indices closed 1.5% higher.

On the sectoral front, barring Nifty FMCG (-0.4%) and PSU Bank (-1%), all other indices closed in the green. Nifty Auto and Nifty Metal were the major outperformers with gains of 3.2% and 3.1%, respectively. Similarly, Nifty Realty and IT were up 2.0% and 2.3%, respectively, for the day. Advance-decline ratio was skewed toward advancers. Out of 2,222 stocks, 1,164 advanced and 746 declined.

Last Wednesday, Nifty made a new high and moved above the previous rally high of 14,754. Hence, we changed the market status to a Confirmed Uptrend. However, the distribution day count remains elevated at six. Nifty is more than 4.6% above its 21-DMA. If the 21-DMA is breached, we may downgrade the status to an Uptrend Under Pressure. Without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions.

Key News

Torrent Pharmaceuticals reported Q3 FY21 results. Revenue slightly increased 1.5% y/y to Rs 1,995 crore. PAT was up 18.3% to Rs 297 crore.

Sun Tv Network (Nse) reported Q3 FY21 results. Revenue grew 17.3% y/y to Rs 994.1 crore. PAT increased 15.9% to Rs 445 crore.

Adani Ports and Special Economic Zone, Berger Paints India, Mahanagar Gas, Tata Steel, and Muthoot Finance will report their Q3 earnings today.

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, 42%; Rally Attempt, 8%; Uptrend Under Pressure, 50%; Downtrend, 0%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 46%; Rally Attempt, 0%; Uptrend Under Pressure, 54%; Downtrend, 0%.