SGX Nifty Indicates a Negative Opening; Nestle Q3 Results Missed Estimates

Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 15,248, compared with Nifty’s close of 15,313 yesterday.

Market status: Confirmed Uptrend

Distribution days: Five

Global stock markets: Dow30, +0.2%; S&P500, -0.1%; Nasdaq, -0.3%; Nikkei, -0.8%; Kospi, -1.3%; Hang Seng, +0.1%

Yesterday, after a gap-up opening, Nifty failed to hold the gains and turned negative. However, last hour buying helped the index close flat for the day. Volume was comparatively higher. In the broader market, Midcap was up 0.4%, while Smallcap was up 0.1%. Nifty is currently trading 4.5% and 7.7% above its 21- and 50-DMA, respectively. The majority of sectors closed in the red. Nifty IT (-1.5%) declined the most, followed by Nifty Media (-0.8%). Nifty Metal was the major gainer, up 2.9%. FIIs’ net buying was Rs 1,144 crore, while DIIs’ net selling was Rs 1,559 crore.

The market status remains in a Confirmed Uptrend. However, the distribution day count is at five. But on a positive note, no new distribution day was added over the last two weeks and Nifty is trading more than 4% 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

Nestle India’s Q3 FY21 results missed estimates on all fronts. PAT was up 2.3% y/y to Rs 483 crore. Revenue grew 9.0% y/y to Rs 3,432 crore. Margin expanded 60bps y/y to 22.6%

Adani Ports and Special Economic Zone has acquired Dighi Port. It has planned an investment of Rs 10,000 crore to build a new gateway into Maharashtra.

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, 50%; Rally Attempt, 4%; Uptrend Under Pressure, 46%; 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%.